The federal new windows tax credit expired on December 31, 2025. If your qualifying energy-efficient windows were installed by that date, you can still claim up to $600 on the 2025 return you file in 2026. Windows installed on or after January 1, 2026 no longer qualify for any federal credit under Internal Revenue Code Section 25C.
The December 31, 2025 Cutoff
The Inflation Reduction Act of 2022 had extended the Energy Efficient Home Improvement Credit through December 31, 2032. Public Law 119-21, signed on July 4, 2025, cut that short. The law amended Section 25C so the credit “will not be allowed for any property placed in service after December 31, 2025.”1Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21
“Placed in service” is the phrase that matters. The IRS defines it as the moment installation is finished and the product is ready for use. A window you bought in December 2025 but had installed in January 2026 does not qualify. The installation completion date controls the whole question, not the purchase date and not the contract date.
How Much the Credit Is Worth
For qualifying windows installed during 2025, the credit equals 30% of the product cost, capped at $600 per year for windows and skylights combined.2Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit To hit that $600 ceiling, you’d need at least $2,000 in qualifying window costs.
Windows sit inside a broader $1,200 annual cap on building envelope improvements that also covers doors and insulation. If you replaced windows and doors in the same year, the door credit runs separately at $250 per door up to $500 total, and both categories count toward the $1,200 combined limit.
The limits apply per taxpayer, not per property. Married couples filing jointly share one set of caps.
What the Credit Covers
The credit applies to the cost of the windows themselves. It does not cover installation labor. The statute includes labor for certain “residential energy property” like heat pumps, but the provision covering building envelope components such as windows references only the amount paid for the improvement itself.2Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit On a larger job where labor runs several hundred dollars per opening, this changes the math considerably.
The windows must be new. Their original use must begin with you, and they must reasonably be expected to last at least five years.3Internal Revenue Service. Instructions for Form 5695 (2024)
Efficiency Standards Your Windows Had to Meet
Qualifying windows had to meet Energy Star program requirements for the climate zone where the home sits. Eligibility depends on two ratings certified by the National Fenestration Rating Council: the U-factor (how well the window insulates) and the Solar Heat Gain Coefficient (how much solar heat passes through the glass).2Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit
For the 2025 tax year, windows generally needed to meet Energy Star Most Efficient criteria, which are tighter than standard Energy Star certification. The specific U-factor and SHGC thresholds vary across four climate zones (Northern, North-Central, South-Central, and Southern). For example, the 2025 Most Efficient criteria required a U-factor of 0.20 or lower in the Northern zone, and an SHGC of 0.23 or lower in the Southern zone. Every qualifying product carries an NFRC label with its certified ratings.
The manufacturer must provide a certification statement confirming the product meets the federal energy requirements for the year it was placed in service. You keep it with your records; you do not submit it with your return.4Internal Revenue Service. Energy Efficient Home Improvement Credit Qualified Manufacturer Requirements
Who Qualifies
The credit applies only to your main home, meaning where you live most of the time. The home must be in the United States, and you must own it. Rental properties and vacation homes do not qualify, and landlords who don’t live in the property cannot claim the credit.5Internal Revenue Service. Energy Efficient Home Improvement Credit
The home also has to be an existing one. Windows installed as part of the original construction of a brand-new home don’t qualify. The credit is for upgrades to a home that was already built and occupied.2Office of the Law Revision Counsel. 26 USC 25C – Energy Efficient Home Improvement Credit
Condo owners can claim a proportionate share when the association replaces windows building-wide, and co-op shareholders can claim a share tied to their stock ownership.6Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements – Qualifying Residence
Rebates Reduce Your Qualifying Cost
If you received a rebate toward your windows from a utility company, the manufacturer, or anyone else connected to the sale, subtract that rebate from your cost before applying the 30% credit. It doesn’t matter whether the rebate went to you or to your contractor.5Internal Revenue Service. Energy Efficient Home Improvement Credit
State energy incentives are treated differently. Many programs are labeled rebates but don’t meet the federal definition of a purchase-price adjustment. When that’s the case, you don’t subtract them from your credit calculation, though they may count as taxable income on your federal return.
The Credit Is Nonrefundable and Doesn’t Carry Forward
This is where people commonly lose expected benefit. The Section 25C credit can reduce the tax you owe down to zero, but it cannot produce a refund on its own. Owe $400 and qualify for a $600 credit? You get $400 of benefit and the remaining $200 is gone.
The unused portion cannot be carried forward to a later year. The IRS has put it plainly: “if a taxpayer does not have sufficient tax liability to claim all or a portion of the credit for a taxable year, the unused amount of the credit may never be claimed.”7Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements – Timing of Credits With the credit terminated, there is no future year in which to use up any leftover amount.
How to File on Form 5695
Claim the credit for 2025 windows on IRS Form 5695 (Residential Energy Credits), filed with your 2025 federal income tax return. Report window and door costs in Part II, Section A. The calculated credit carries to your Form 1040 and reduces your tax directly.3Internal Revenue Service. Instructions for Form 5695 (2024)
You must include a qualified manufacturer identification number (QMID) on the applicable lines. For 2025 installations, the IRS lets you use a four-character QM Code in place of a full product identification number.8Internal Revenue Service. Energy Efficient Home Improvement Credit – PIN Requirements It appears on the manufacturer’s certification statement or product documentation. If you can’t find it, contact the manufacturer before filing.
Keep your receipts, invoices, and the manufacturer’s certification statement with your tax records. The IRS can request them during an audit, and without them your claim is difficult to defend.