Tax credits are a great way to save money. There are many of them, including credits for installing energy-efficient windows. Tax credits are available for similar upgrades such as installing wind turbines, solar-powered water heaters, and geothermal pumps as well. Once you receive a credit, you can keep the money in your bank account or use it for home upgrades, education, car payments, and mortgage payments.
Nonbusiness Energy Property Tax Credit
The Nonbusiness Energy Property Tax Credit had previously expired. It could be claimed for tax years prior to 2018. You can claim it if you haven’t filed a 2018 tax return yet. It’s also possible to amend a previous return if you didn’t include the credit. But the good news is this tax credit was extended for primary residences through December 31, 2020.
You can receive up to 10% of the cost of energy-efficient windows, up to $500, or an amount you specify (anywhere from $50 to $300). It also includes installation costs of other high-efficiency installations. But to qualify, the home you upgrade must be your principle residence and an existing home. You can’t file for the tax credit if the property is a rental or new construction.
However, the tax credit for energy-efficient home builders has also been extended through December 2020, as have tax deductions available to owners of energy-efficient commercial buildings.
Can I Get a Tax Credit for Upgrades Other than Windows?
Yes, you can. You are eligible for a tax credit if you install ENERGY STAR rated windows, doors, and skylights. Not all your windows and doors have to be replaced to qualify. Just by replacing a single window or door where you didn’t have one before, you can claim a tax credit. You can also claim deductions for installing metal and asphalt roofs, non-solar water heaters, insulation, biomass stoves, and efficient heating, ventilation, and air conditioning equipment.
How Do I Claim an Energy Efficient Window Tax Credit?
To claim an energy-efficient window replacement tax credit, you must fill out Form 5695. The form must be included with your tax return you submit to the IRS. For certain upgrades, you can file the Residential Renewable Energy tax credit. You can still save by using these credits, although they have been dropping in value. But a tax credit is more valuable than a standard deduction, and helps offset the high costs of home upgrades such as installing energy-efficient windows.
Energy Efficient Windows Offer Cost-Saving Advantages
Tax credits are just one way that installing energy-efficient windows can help you save. These modern windows are designed to reduce the load on your air conditioning and heating system, as they avoid air leakage. Warm air and cool air, therefore, stay where you want them to. In turn, your energy costs go down and the monthly utility bills are lower. Together with federal tax credits, the savings you realize by investing in energy-efficient windows can be rather substantial.
Contact Window World of Boston
At Window World of Boston, we can give you a free estimate on replacing your windows with energy-efficient units. Founded in 1995, we install more than 1 million residential replacement windows each year. We strive to make window replacement as affordable as possible and even offer an in-house financing program with flexible options. Apply online or call our Shrewsbury, Pembroke, or Woburn office to learn more about our products.