Everything You Need to Know About the Energy Tax Credit
By: Architectural Visions
Replacing your existing windows with energy-efficient versions may qualify you for a tax credit. This guide will break down everything you need to know about the energy tax credit.
Key Takeaways
- The energy tax credit covers 10% of the cost of qualified energy efficiency improvements up to $500
- A window needs to have an ENERGY STAR label to be considered energy-efficient
- Look for the window frame material and number of panes of glass in an energy-efficient window
- Benefit from cost savings, increased indoor comfort and being environmentally responsible.
Read on to learn how you can benefit from installing energy-efficient windows in your home.
What is the energy tax credit?
The Non-Business Energy Property Tax Credit covers 10% of the cost of qualified energy efficiency improvements up to $500, or a specific amount from $50-$300. A maximum of $200 can be for energy-efficient windows. The energy tax credit expires on December 31, 2021. It must apply to an existing home and your primary residence — new construction and rentals don’t apply.
To claim the energy tax credit, you need to file Form 5695 with your tax return.
What qualifies as energy efficient?
If you’re not sure if your windows are considered energy-efficient, the easiest way to determine this is to look for an ENERGY STAR label. ENERGY STAR-qualified windows must be:
- Manufactured by an ENERGY STAR partner
- Tested, certified and verified by the National Fenestration Rating Council (NFRC)
- Have NFRC ratings that meet strict energy efficiency guidelines set by the US Environmental Protection Agency (EPA)
Energy-efficient windows are made of quality frame materials, typically have three panes, low-E glass, gas fills and warm edge spacers.
What to look for in an energy-efficient window
If you’re preparing to invest in energy-efficient windows, there are several features to consider before you invest. Some of these features include:
- Window frame: The frame is the window’s foundation. Common window frame materials include fiberglass, vinyl, aluminum, wood and composite. The more durable the structure, the less likely it is to warp, which will help prevent drafts. Foam-filled frames can also provide extra insulation.
- Window panes: Energy-efficient windows typically have two or three panes of glass. Energy can escape a single-pane window, but multiple panes provide insulation and help block heat transfer.
- Weatherstripping: Weatherstripping creates a seal along the edges of the window to keep drafts out. Energy-efficient windows have more significant amounts of high-quality weather stripping.
The benefits of energy-efficient windows
Energy-efficient windows offer many benefits. These benefits range from cost, comfort and helping improve the environment. Below are the top benefits of energy-efficient windows.
- Cost savings: One of the most significant perks is the money you will save on heating and air conditioning costs. Replacing single-pane windows with energy-efficient options can save you several hundred dollars per year.
- Indoor comfort: Energy-efficient windows help maximize your comfort when you’re indoors. During hot outdoor temperatures, energy-efficient windows will keep you cool and keep you warm indoors when it’s cold outside.
- Environmentally responsible: ENERGY STAR certified windows are a responsible decision for the environment. They can reduce carbon footprints by an average of 12 percent nationwide.
AVI Windows & Doors
Investing in energy-efficient windows will not only qualify you for an energy tax credit but will also save you on your heating and air conditioning costs throughout the year. The long-term benefits of energy-efficient windows will pay off financially over time while also benefiting the environment. AVI Windows & Doors is here to help. Please don’t hesitate to reach out to us by phone, online, or in person at one of our locations today: