Window Replacement Tax Credit: Which Windows Qualify Under 25C?

Last reviewed: 2026-06-11 (UTC)

If you are searching for the energy efficient window tax credit in 2026, the clearest answer is this: the current IRS Energy Efficient Home Improvement Credit guidance and ENERGY STAR windows and skylights tax-credit page support claims for qualifying exterior windows and skylights purchased and installed between Jan. 1, 2023 and Dec. 31, 2025. Do not assume a brand-new 2026 installation still qualifies under unchanged 25C rules without rechecking the latest federal guidance.

Here is the short version for homeowners:

The current federal rule is 30% of product cost, up to $600 total for exterior windows and skylights combined, under the IRS credit page and ENERGY STAR's windows page.
IRS guidance says labor costs for installing building-envelope components do not qualify.
ENERGY STAR says exterior residential windows and skylights must meet ENERGY STAR Most Efficient criteria for your climate zone.
The IRS how-to page says this is for an existing home in the United States that you own and use as your primary residence, and ENERGY STAR's window guidance also frames this category around a taxpayer's principal residence.
The IRS credit page says the credit is nonrefundable, so you cannot get back more than you owe and cannot carry unused credit forward.

That timing distinction matters. Many 2026 readers are not really asking about a future project. They are asking whether a qualifying window job completed in 2025 can still be claimed on the tax return they file in 2026.

This page is informational, not tax, legal, or contractor advice. Use it to translate the official rules and double-check your paperwork before you file or sign a quote.

Quick answer

Question	Fast answer
Is there currently a window replacement tax credit?	Under the current published federal guidance, yes for qualifying 2023-2025 window and skylight projects. Do not assume a new 2026 install still qualifies without rechecking current IRS rules.
How much is it worth?	30% of product cost, up to $600 total for exterior windows and skylights combined.
Do all ENERGY STAR windows qualify?	No. Exterior windows and skylights must meet ENERGY STAR Most Efficient criteria for your climate zone.
Does labor count?	No. Labor for installing building-envelope components does not qualify.
What kind of home qualifies?	Generally an existing home in the United States that you own and use as your principal residence.
How do I claim it?	File IRS Form 5695 for the year the windows were placed in service and keep your receipts, installation records, and product labels.
Can unused credit carry forward?	No. Current IRS guidance says this credit is nonrefundable and excess does not carry forward.

Does the window replacement tax credit still apply?

As of this review date, the current official answer is yes for qualifying 2023-2025 projects, not as a blank check for future years.

The ENERGY STAR windows and skylights page says the credit is effective for products purchased and installed between January 1, 2023 and December 31, 2025. The 2025 IRS Form 5695 instructions say you cannot claim the energy efficient home improvement credit for expenditures or property placed in service after December 31, 2025 under the currently published instructions.

That timing matters because homeowners often mix up three separate dates:

when they signed the contract,
when the windows were installed, and
when they file the tax return.

For this credit, the key question is whether the windows were placed in service within the eligible window. So if your windows were installed in 2025, you may still be filing that claim in 2026 on the return for the 2025 tax year.

If you are pricing a brand-new 2026 installation, do not rely on older articles that simply say "window tax credit." Recheck the latest IRS and ENERGY STAR guidance before you build the credit into your budget.

Which windows actually qualify?

This is the part many pages blur.

According to ENERGY STAR's windows and skylights tax-credit page, not every efficient window qualifies, and not every window with an ENERGY STAR label qualifies either. Exterior residential windows and skylights must meet ENERGY STAR Most Efficient criteria to be eligible for this credit.

That means the safest qualification workflow looks like this:

1. Find your climate zone

Use the ENERGY STAR Climate Zone Finder to identify the climate zone for your home.

2. Find the product's CPD number

ENERGY STAR says to identify the product's Certified Product Directory (CPD) number from the label or product documentation.

3. Check the NFRC directory

Search that CPD number in the NFRC Certified Product Directory. ENERGY STAR says that if your climate-zone field is shaded green, the product is eligible for the tax credit. If it is not shaded green, it is not eligible.

That is much better than relying on a sales phrase like "energy efficient" or even "ENERGY STAR certified" without checking the exact Most Efficient and climate-zone match.

What this means in practice

A qualifying window is not just "a better window." It is a window that:

is an exterior residential window or skylight,
meets the Most Efficient threshold for your climate zone, and
can be backed up by product documentation if the return is questioned later.

If you want one clean ask for a contractor or seller, use this: show me the product's CPD number and the NFRC result for my climate zone before I count on the credit.

The IRS how-to page also says the manufacturer, retailer, or installer should be able to help validate whether the product you plan to buy is eligible.

Who can claim the credit?

For exterior windows and skylights, the rule is narrower than many homeowners expect.

The IRS how-to page says the property must be:

located in the United States
an existing home that you improve or add onto, not a new home
owned and used by you as your primary residence

ENERGY STAR's window guidance makes the same category-specific point: for exterior doors, windows, skylights, insulation, and air sealing materials, the home must be owned and used by the taxpayer as the taxpayer's principal residence.

That means this is generally not the right credit for:

a newly built home,
a rental property you own but do not live in, or
a second home used only occasionally

How much is the credit worth?

For qualifying windows and skylights, the headline rule is simple.

The IRS credit page and ENERGY STAR's window page say the credit is:

30% of product cost, and
capped at $600 total for exterior windows and skylights combined.

The IRS credit page also keeps windows inside the broader $1,200 annual bucket for many energy efficient home improvement items. So the $600 window cap is a sub-limit, not a separate category with unlimited room above it.

Two simple examples

If your qualifying window product cost was $1,500, then 30% would be $450, so your credit would be $450.

If your qualifying window product cost was $3,000, then 30% would be $900, but your credit would still be capped at $600.

What costs count?

For windows and skylights, the ENERGY STAR window page frames the benefit around product cost, and the IRS credit page is the governing source for what can and cannot be included.

What does not count?

The IRS credit page says labor costs for installing building-envelope components do not qualify. That means homeowners should be careful not to treat the full invoice as tax-credit eligible if the quote includes installation labor, trim, disposal, or other non-product costs.

If your quote blends product and labor together, ask for an itemized breakout before you estimate the credit.

How rebates and incentives affect the math

This is another place where homeowners can overstate the credit.

On the IRS credit page's subsidies, rebates, and incentives section, the IRS says you may need to subtract subsidies, rebates, or other financial incentives from qualified expenses because they can be treated as a purchase price adjustment.

The practical version is:

public utility subsidies for buying or installing qualifying energy property are subtracted from qualified expenses,
rebates tied to the property cost are subtracted when they come from someone connected to the sale, such as the manufacturer, distributor, seller, or installer, and
state efficiency incentives are not always treated the same way under federal tax rules, even when a state program casually calls the payment a rebate.

So do not stack every incentive on top of the full product cost and assume the tax credit is still calculated on the original number.

If you are comparing quote price, rebates, and tax benefits together, keep the math in separate buckets first. Watt Wallet's guide on How to Compare Rebates, Tax Credits, and Installer Quotes is the right next step. And if multiple savings programs are involved, read Can You Stack Rebates and Tax Credits? before you commit to a number.

How to claim the credit on Form 5695

The filing workflow is more straightforward than many contractor pages make it sound.

Step 1: Make sure the home and product are eligible

The IRS how-to page says to confirm that:

the home qualifies,
the product qualifies, and
the purchase and installation timing fits the rule.

Step 2: Keep the right records

The IRS how-to page says documentation is not filed with your return, but you should keep it in case of audit.

The IRS specifically recommends keeping:

purchase receipts,
installation records,
any ENERGY STAR labels, and
any NFRC labels affixed to the windows, skylights, or doors.

Those records can also matter later if you need to substantiate adjusted basis when the property is sold.

Step 3: File Form 5695 for the year the windows were placed in service

The IRS how-to page says you file Form 5695, Residential Energy Credits, for the year in which the windows, doors, or skylights were placed in service.

So if the installation happened in 2025, that is the tax year that matters even if you are filing the return in 2026. If you want a deeper filing walkthrough after you confirm the window itself qualifies, use both the official IRS Form 5695 instructions and Watt Wallet's Form 5695 Instructions.

Step 4: Check the 2025 qualified-manufacturer / QM-code requirement

This is one of the easiest filing details to miss.

The IRS credit page says that for each qualifying item placed in service in 2025, no credit is allowed unless the item was produced by a qualified manufacturer and the taxpayer reports the Qualified Manufacturer Identification Number (QMID) for the item on the tax return.

ENERGY STAR's broader federal tax-credit guidance adds the practical 2025 note: because manufacturer registration is still in process, 2025 installations can use the manufacturer's four-digit QM code on the 2025 tax return. ENERGY STAR says that applies to windows, doors, and skylights.

If you are claiming a 2025 window credit and nobody on the sales side mentioned the manufacturer's code or tax documentation, pause and verify your paperwork before you file.

Common mistakes to avoid

Mistake 1: Assuming any ENERGY STAR window qualifies

The safer rule is not just "ENERGY STAR." It is ENERGY STAR Most Efficient for your climate zone, verified through the CPD and NFRC workflow.

Mistake 2: Including labor in the credit calculation

The IRS says labor for installing building-envelope components does not qualify.

Mistake 3: Confusing filing year with installation year

Homeowners filing in 2026 may still be claiming a 2025 installation. The placed-in-service year matters.

Mistake 4: Ignoring rebate treatment

Some rebates reduce the qualified expense used to calculate the credit. Do not assume the tax-credit basis is always the full pre-rebate quote.

Mistake 5: Assuming a future-year purchase automatically qualifies

The current official pages reviewed for this guide support claims for windows purchased and installed through Dec. 31, 2025. If your project is later than that, verify the latest rule before you count on the credit.

FAQ

Do all ENERGY STAR windows qualify for the tax credit?

No. Exterior residential windows and skylights must meet ENERGY STAR Most Efficient criteria for your climate zone.

How much is the window replacement tax credit worth?

It is worth 30% of product cost, up to $600 total for exterior windows and skylights combined.

Are installation costs included?

No. Labor for installing building-envelope components does not qualify.

Can I claim the credit for windows in a rental property or second home?

Generally no for exterior windows and skylights. The current guidance says this category is generally limited to a principal residence.

What if I installed the windows in 2025 but I am filing in 2026?

That can still be the right filing flow. You file Form 5695 for the year the windows were placed in service.

What if I got a rebate from the utility or manufacturer?

You may need to reduce qualified expenses before calculating the credit. The IRS treats some subsidies and rebates as purchase-price adjustments.

What paperwork should I keep?

At minimum, keep receipts, installation records, and any ENERGY STAR or NFRC labels or documentation tied to the qualifying product.

How do I know the specific window I bought qualifies?

Use the direct ENERGY STAR workflow: confirm your climate zone, find the product's CPD number, and verify the product in the NFRC Certified Product Directory.