How to Get a Tax Rebate on Replacement Windows

Replacing old windows can save you money on your taxes.

Replacing windows in a home is a sizable investment. The U.S. government offers a tax credit to encourage homeowners to invest in energy-saving windows. Energy-efficient products conserve energy and reduce costs to consumers by using the latest energy-conservation materials available.

Step 1

Purchase energy-efficient windows for your home. The American Recovery and Reinvestment Act of 2009 introduced a tax credit equaling a maximum of 30 percent of the total cost for new windows, with a dollar value of up to $1,500. For example, a purchase of $10,000 in qualifying windows would earn the maximum of a $1,500 rebate, while the purchase of $3,000 in qualifying windows would qualify for $900 in tax credits.

Step 2

Browse your window options, making sure the energy-efficient windows you choose meet the standards necessary to qualify for an energy-efficient-window tax credit.

Step 3

Check for windows with a U-factor of 0.30 or less and a 0.30 SHGC. Check specifications carefully to make sure they qualify for an energy-efficient tax credit.

Step 4

Keep records of all windows replaced and save all receipts for your tax records.

Step 5

File for a tax rebate when you complete your tax returns.

Tip

This tax credit replaces the previous tax credits established in the Energy Policy Act of 2005, which limited tax credits to a maximum of $500. The new tax-credit limit has been increased to $1,500. Tax credits are a substantially better benefit than a tax deduction. A tax credit of $1,500 directly lowers your taxes by $1,500, while deductible expenses merely reduce your taxable income. The purchase must be have been made after Feb. 16, 2009.

Warning

Consult a tax professional to receive the most up-to-date tax information.

Things You'll Need

  • New windows

  • Receipts from windows

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