Maximize Savings with Energy Star® and Federal Tax Credits
WHY CHOOSE ENERGY STAR?
Upgrading old windows to ENERGY STAR certified windows can reduce household energy bills by an average of up to 13% nationwide, especially when replacing single-pane windows. Lower energy use also helps cut greenhouse gas emissions from both power plants and homes.
FEDERAL TAX CREDITS
The Inflation Reduction Act, signed into law in 2022, is a sweeping piece of legislation designed to combat rising costs while incentivizing clean energy adoption. One of the key aspects of the Act is its focus on reducing energy costs for homeowners by providing financial incentives for energy-efficient home improvements. Under this law, homeowners can benefit from tax credits and rebates when they make eco-friendly upgrades like installing energy-efficient windows, doors, insulation, and more.
As part of this effort, the federal government has expanded its support for ENERGY STAR certified products, offering substantial savings through tax credits. If you're considering an upgrade, now is the time to explore the ENERGY STAR Most Efficient 2024 windows, which qualify for significant federal tax credits, helping you save even more while boosting your home's energy efficiency.
$1,100 PER YEAR!
The federal tax credits for replacing windows and doors with ENERGY STAR Most Efficient products are part of the incentives available under the Inflation Reduction Act. These credits are designed to encourage homeowners to invest in energy-efficient upgrades, helping both the environment and their wallets.
KEY DETAILS OF THE FEDERAL TAX CREDIT:
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EFFECTIVE DATES:
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The tax credits are available for qualifying window and door replacements made from January 1, 2023, through December 31, 2032.
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CREDIT AMOUNTS:
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Homeowners can claim up to $600 annually for replacing windows.
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A maximum of $250 per exterior door (up to two doors) or $500 total for all doors can be claimed.
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These tax credits can help offset the cost of upgrading to ENERGY STAR Most Efficient windows and doors, reducing energy bills and contributing to a more sustainable home.
TAX CREDIT VS. DEDUCTION
A tax credit and a tax deduction both reduce the amount you owe, but they work in different ways:
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TAX DEDUCTION: Reduces your taxable income, which in turn lowers the amount of income tax you owe. For example, if you have a $1,000 deduction and you’re in the 25% tax bracket, your tax bill would be reduced by $250 (25% of $1,000).
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TAX CREDIT: Directly lowers the amount of taxes you owe, dollar for dollar. If you owe $1,000 in taxes and receive a $1,000 tax credit, your tax liability is completely wiped out.
When you replace your windows with ENERGY STAR Most Efficient models, you receive a tax credit, which directly lowers your tax liability dollar for dollar. This means that if you qualify for a $600 tax credit, it will reduce your taxes owed by $600—providing a significant financial benefit.
