Energy Tax Credit
An exterior window or door (other than a storm window or storm door) is considered
an “Eligible Building Envelope Component” when it meets or exceeds the prescriptive
criteria established by the IECC for the climate zone in which the window or door
is installed.
A taxpayer may treat an exterior window that bears an ENERGY STAR® label and is
installed in the region identified on the label as an Eligible Building Envelope
Component and may rely on such ENERGY STAR® label, rather than on a manufacturer’s
certification statement, in claiming the § 25C credit.
The credit amount established by § 25C of the Internal Revenue Code is:
10% of the amount paid or incurred by the taxpayer for qualified energy efficiency
improvements installed during the taxable year.
Up to $200.00 maximum credit for windows for all taxable years (maximum $500.00
credit for all improvements combined).
Allowed only for amounts paid or incurred to purchase the window or door.
Not allowed for amounts paid for onsite preparation, assembly, original installation
labor, other components or sales tax.
The purchase must be made during the taxable year for which the credit is claimed.
Retroactive and with time limits, covering product in service after December 31,
2005 and before January 1, 2008.
The Energy Tax Credit information contained on the Windows on Washington site is
not complete or comprehensive. For the entire scope of information about the Credit
for Non-Business Energy Property § 25C, please visit:
www.irs.gov/pub/irs-drop/n-06-26.pdf