Updated June 2026
The federal energy-efficient windows tax credit expired December 31, 2025, under the One Big Beautiful Bill Act. There is no federal Section 25C credit for windows installed in 2026. However, homeowners who installed qualifying windows in 2025 can still claim it on their 2025 tax return — and utility rebates plus state programs remain available for new projects this year.
This is based on GrowLocal's proprietary research into top-ranking local business websites, combined with IRS guidance and ENERGY STAR program data current as of June 2026.
Here's the complete picture: what's gone, what still exists, and how a local window company can guide customers through this question and turn it into a free estimate.
Did the federal window tax credit actually expire?
Yes. Section 25C — officially the Energy Efficient Home Improvement Credit — expired on December 31, 2025. The IRS confirmed in its official guidance: "The credit will not be allowed for any property placed in service after December 31, 2025."
The credit was originally designed to run through 2032 under the Inflation Reduction Act. The One Big Beautiful Bill Act, signed July 4, 2025, cut that timeline seven years short.
What the credit covered for windows specifically:
- 30% of qualifying window costs, subject to an annual cap
- Up to $600 per year on qualifying window upgrades (part of a $1,200 combined annual cap that also covered insulation, doors, and energy audits)
- Only windows meeting ENERGY STAR's U-Factor and SHGC thresholds for your climate zone qualified
The credit was annual — not lifetime — so homeowners who replaced windows in phases could claim it multiple years. That window is now closed.
Can you still claim the credit if you installed windows in 2025?
Yes — and this is the most important thing to tell customers who ask.
If a homeowner installed qualifying energy-efficient windows in 2025, they can still claim the Section 25C credit on their 2025 federal tax return (typically filed in early 2026, or by the extension deadline in October 2026). The installation date is what determines eligibility, not the year you file.
To claim it:
1. The windows must have been installed and placed in service by December 31, 2025
2. They must meet ENERGY STAR's certification criteria (U-Factor ≤ 0.20, SHGC ≤ 0.25 for most climate zones — check the ENERGY STAR Most Efficient criteria for your region)
3. File IRS Form 5695 with your 2025 return
4. Keep your dated sales receipt and the NFRC label showing certification
For a local window company, this means homeowners calling in 2026 who replaced their windows last year may still have an unclaimed credit. That's worth flagging in your initial consultation.
What rebates and incentives still exist for window replacement in 2026?
The federal credit is gone, but the savings landscape hasn't disappeared. Here's what's still available:
| Program | Amount | How to Access |
|---|---|---|
| ENERGY STAR Rebate Finder | Varies by ZIP | energystar.gov/rebate-finder — enter your ZIP to see utility + state offers |
| HOMES Program (state-administered) | $2,000–$8,000 | Performance-based rebate; depends on income level and % energy savings achieved |
| HEAR Program (state-administered) | Varies by state | Home Electrification and Appliance Rebates; availability varies |
| Utility rebates | Varies | Many local utilities offer their own window rebates independent of federal programs |
| State tax credits | Varies | A handful of states have their own residential energy incentive programs |
The ENERGY STAR Rebate Finder is the fastest starting point. Enter a ZIP code at energystar.gov/rebate-finder to see which utility programs and state incentives apply to that location — for windows specifically, look under "Building Products."
The HOMES Program (formally: Home Owner Managing Energy Savings) is funded by the Inflation Reduction Act and continues to operate independently of Section 25C. It covers whole-home energy improvements, and windows can be included when they're part of a qualifying retrofit. Rebates are performance-based — the bigger the energy savings, the larger the rebate, up to $8,000 for income-qualified households. However, program availability varies by state; your utility or a state energy office can confirm status.
The honest reality: rebate amounts from these programs can exceed what Section 25C ever paid out in a single year — especially for income-qualified homeowners in states with fully deployed HOMES funding.
Key takeaway: The federal Section 25C credit is gone, but state and utility incentive programs remain. Across our research into top-ranking local business websites, FAQ sections were found to be significantly underused for pre-qualifying leads — a window company that answers this question clearly on its website see our window & door website breakdown reduces its #1 pre-quote objection before the phone even rings. See our full analysis of FAQ and conversion patterns across local business websites.
How much do energy-efficient windows actually save on energy bills?
This question becomes more important now that the federal credit is gone — customers need a reason to move forward on a project that averages $7,000 or more for a full home.
The Department of Energy puts it plainly: windows account for 25–30% of a home's total heating and cooling energy use. Replacing single-pane windows with double-pane can cut the energy lost through windows by 25–30% — which translates to roughly $100–$400 per year in utility savings for a typical home, depending on climate and energy costs.
That math doesn't make window replacement a pure financial play. For most homeowners, the payback period on energy savings alone runs 15–30 years on a $7,000–$12,000 whole-house project. The real value case is different:
- Comfort — eliminating drafts, condensation, and hot spots near windows
- Noise reduction — double and triple-pane glass significantly reduces outdoor noise
- Resale value — buyers notice and value new windows; it's visible curb appeal and credible maintenance
- Climate-specific benefits — in Florida, impact-rated windows reduce hurricane risk and insurance costs; in Arizona and Texas, Low-E coatings reduce solar heat gain and cut AC load meaningfully
For a local window contractor, the value conversation has always been more than the tax credit. The credit was a bonus — not the reason most homeowners replaced their windows.
How does a local window company help customers navigate remaining incentives?
This is where your website does real work.
Customers are searching "does the window tax credit still exist" and landing on IRS pages, national franchise sites, and thin blogs. None of those sources give a local contractor's honest answer. A local contractor who says "here's exactly what's available in your area, and I'll help you confirm eligibility during our free estimate" has a clear trust advantage.
What that looks like in practice:
- A FAQ section on your website that answers this question directly — "Is there still a tax credit for window replacement in 2026?" — keeps customers from bouncing to a competitor for information. The strongest window company websites we've analyzed all use FAQ sections, though most still underuse them for lead pre-qualification. See how window and door websites compare to other home service categories for context on how well competitors in your trade use this pattern.
- A quote form with context — a short note on your contact page like "Ask about current utility rebates in your area" signals that you're up to date and that the estimate conversation is worth having
- No fabricated savings claims — don't promise "$600 back on your taxes" in 2026. Customers who've already Googled this will know the credit is gone, and a stale claim damages trust fast
A GrowLocal website for a window company includes a built-in FAQ section, quote/contact form, and gallery for project photos — the features that handle the pre-estimate research cycle honestly. What it doesn't do is connect live to your Google reviews feed or handle online scheduling; those require your own Google Business Profile and booking tool. But the core trust signals — FAQ, testimonials entered manually, gallery, service pages, fast static hosting — are exactly what the pre-estimate research phase demands. See what a window company website includes and preview one before deciding.
What makes a window qualify for the (now-expired) credit?
For homeowners who installed in 2025 and are filing now, here's what qualified:
- Must be an ENERGY STAR certified window or skylight
- Must meet the U-Factor ≤ 0.20 and SHGC ≤ 0.25 threshold (ENERGY STAR Most Efficient designation for most climate zones — check energystar.gov for your zone's criteria)
- Must be installed in your primary residence (not a rental or second home)
- Must be a replacement window (new construction windows didn't qualify)
- Installation must have occurred between January 1, 2023 and December 31, 2025
The NFRC label on qualifying windows lists both the U-Factor and SHGC values. If you installed windows during this period and still have the NFRC label, you have what you need for Form 5695.
Frequently Asked Questions
Is there still a federal tax credit for energy-efficient windows in 2026?
No. Section 25C — the Energy Efficient Home Improvement Credit — expired December 31, 2025. Windows installed in 2026 do not qualify for a federal tax credit. The IRS has published official guidance confirming the credit is unavailable for installations after that date.
I installed windows in 2025 — can I still claim the credit?
Yes. The credit applies to qualifying windows installed and placed in service by December 31, 2025. You claim it on your 2025 tax return using IRS Form 5695. If you haven't filed yet, or filed for an extension, you can still take the credit — provided your windows meet ENERGY STAR Most Efficient criteria.
What rebates are available for window replacement in 2026?
State-administered programs (HOMES and HEAR, funded by the IRA) remain available in many states and can be worth $2,000–$8,000 for qualifying households. Utility company rebates also continue independently; the ENERGY STAR Rebate Finder at energystar.gov/rebate-finder lets you search by ZIP to see what applies in your area.
How much does window replacement actually cost in 2026?
A whole-house window replacement typically runs $4,500–$18,000 depending on window count, frame materials, glass type, and your market. Energy-efficient double-pane windows average $400–$900 per window fully installed. Prices have risen 12–18% since 2022 due to material costs and labor shortages, making it more important than ever to get a free, no-pressure estimate from a local contractor who knows your market.
Does my window company need a website to handle these tax credit questions?
Across GrowLocal's proprietary research into top-ranking local business websites, FAQ sections are consistently underused relative to their lead-qualification potential (see our home-services data). A window company website with a clear FAQ that answers the tax-credit question — plus a quote form for the next step — handles the most common pre-estimate objection before the call. That's the conversion case for a proper website in this trade.
How do I find out if a utility rebate applies in my area?
Start at the ENERGY STAR Rebate Finder (energystar.gov/rebate-finder) and enter the homeowner's ZIP code. Look under "Building Products" for window-specific offers. Your state energy office website and your local utility's website are also worth checking — rebate programs are updated frequently and what's available varies significantly by location.
Should I wait for Congress to restore the window tax credit?
There's no current legislation restoring Section 25C for window replacements. The credit's early termination was intentional under the One Big Beautiful Bill Act. Planning a window project around a potential future credit — rather than today's real costs, energy savings, and available utility rebates — is a risk that rarely pays off. If windows need replacing, the case for doing it now rests on comfort, energy savings, and available incentives, not federal credit speculation.
Can a local window company help me apply for utility rebates?
Many local window contractors will pull the ENERGY STAR certification documentation needed for a utility rebate application — it's part of a complete installation. Ask about this upfront when you request your free estimate. The rebate amount is usually paid to you as the homeowner directly, but your contractor can often help you gather the paperwork.