Energy-efficient window tax credits: what changed for 2026

If you're planning a window replacement in 2026 and expecting a federal tax credit for it, here's the direct answer: there isn't one right now. The federal Energy Efficient Home Improvement Credit for windows applied only to products placed in service between January 1, 2023 and December 31, 2025. That window has closed. Windows installed in 2026 don't qualify under current law, no matter how efficient they are.

That's a change worth knowing about before you budget a window replacement around a credit that no longer applies.

What happened to the window tax credit

The credit, part of the tax code's Section 25C, was originally set to run through 2032 under the 2022 Inflation Reduction Act. A later law, signed in 2025, repealed several residential energy credits early, including this one, for property placed in service after December 31, 2025. ENERGY STAR's own federal tax credit page for windows and skylights reflects that cutoff directly: the credit applied to products "purchased and installed between January 1, 2023, and December 31, 2025."

The key phrase there is "placed in service," which means installed, not purchased. A window bought in late 2025 but installed by a contractor in January 2026 doesn't qualify, even if the invoice is dated 2025.

What the credit used to be worth

For windows installed through the end of 2025, the credit covered 30% of the product cost, up to $600, within a combined $1,200 annual cap that also applied to other eligible home energy upgrades like insulation and doors. It applied to the window itself, not labor or installation costs, and only to products meeting ENERGY STAR Most Efficient criteria, a stricter tier than standard ENERGY STAR certification.

Here's how that breaks down by year, since the two years now have different outcomes:

If you installed windows in 2025

If your windows went in before the end of 2025, you're likely still eligible to claim the credit on that year's return. You'll need IRS Form 5695 and documentation showing the windows met ENERGY STAR Most Efficient certification at the time of installation. A tax professional can walk you through the specific paperwork your filing needs; this article isn't tax advice for your individual return.

What this means if you're replacing windows in 2026

The federal credit isn't part of the math anymore, but that doesn't mean there's nothing out there. Some state energy offices and utility companies run their own rebate or incentive programs for energy-efficient home upgrades, separate from federal tax law. Availability varies a lot by state and even by utility provider, so it's worth checking ENERGY STAR's Rebate Finder or your local utility's website before you assume there's nothing available.

It's also worth asking a contractor directly. Some run seasonal promotions or financing offers that have nothing to do with tax policy, and those can matter more to your actual budget than a credit that no longer exists.

Tax law in this area has already changed once in the past few years, so don't treat any article, including this one, as the final word by the time you file. Check the current IRS Energy Efficient Home Improvement Credit page or ENERGY STAR's federal tax credit page directly before making a decision based on a specific number.

Where this leaves your decision

Losing a federal incentive doesn't change what efficient windows do for a home. ENERGY STAR-certified windows can still reduce utility bills, and a window replacement project still affects resale value independent of any tax credit. The credit was a bonus on top of a decision that usually made sense on its own, not the only reason to do the project.

If you're weighing whether to move forward now, WindowsRenew can still connect you with trusted local contractors for a free, no-obligation quote, so you know the real cost for your home before you decide anything about timing.

Frequently asked questions

Is there a federal tax credit for new windows in 2026?

No. The federal Energy Efficient Home Improvement Credit for windows applied only to products placed in service between January 1, 2023 and December 31, 2025. Windows installed in 2026 or later don't qualify, under current law.

What if I installed new windows in 2025 but haven't filed my taxes yet?

You can still claim the credit on your 2025 federal tax return using IRS Form 5695, as long as the windows were installed (not just purchased) by December 31, 2025 and met ENERGY STAR Most Efficient certification. A tax professional can confirm your paperwork is complete.

What did the window tax credit used to cover?

At 30% of the window's product cost, capped at $600, within a combined $1,200 annual limit across several home energy improvements. The credit covered the window itself, not installation labor.

Could the federal window tax credit come back?

Tax law can change again. Since the credit has already been added, expanded, and repealed once in the past few years, check the current IRS and ENERGY STAR pages directly before you file, rather than relying on an older article.

Are there other ways to save money on energy-efficient windows in 2026?

Some state energy offices, utility companies, and local governments run their own rebate programs independent of the federal credit. ENERGY STAR's Rebate Finder is a reasonable place to check what, if anything, is available where you live.

References

• ENERGY STAR Federal Tax Credits: Windows & Skylights: official program page confirming the credit applied to products placed in service between January 1, 2023 and December 31, 2025
• IRS: Energy Efficient Home Improvement Credit: filing requirements, Form 5695, and the rule that the credit year is based on when property is placed in service
• ENERGY STAR Rebate Finder: state and utility rebate programs for energy-efficient home upgrades, separate from the federal tax credit