It’s the time of year when many people are thinking about filing their tax returns for last year, so we thought it would be a good time to talk about a great way to reduce your tax bill for the current year. Recently, new federal tax credits went into effect that affect homeowners who make energy efficiency improvements in their homes. There are a variety of improvements that qualify, and one of them is installing new, energy-efficient windows and doors.
What does this mean exactly? It means that if you have qualifying replacement windows installed in your home this year, you can get a tax credit on your 2023 tax return! How much, you ask? You can get up to $600 back on the cost of your replacement windows, and up to $500 back on replacement patio doors—for a total of up to $1,100! This credit can reduce the amount you owe on your 2023 tax return.
How to Get a Tax Credit on Energy-Efficient Replacement Windows for Your Danville Home
Here’s how you qualify for a tax credit on a replacement window purchase: First, you must select replacement windows and doors that are on Energy Star’s approved list. This list is constantly being updated, so be sure to verify that the windows you want to purchase are on it. You should also save your receipt that shows the type of windows and doors you purchased, how much you paid for them, and the date on which they were installed. Then, when you go to file your 2023 tax return next year, tell your accountant or indicate in your tax return software that you made an energy efficiency home improvement during the year. After answering a few simple questions, you should get the appropriate tax credit. Be sure to hang on to your receipt in case you are ever audited. Of course, we aren’t tax experts here at Custom Exchange, so if you have any detailed questions about the tax credit, be sure to ask your accountant for clarification.
Tax credits like these are the government’s way of encouraging homeowners to reduce their energy usage. You can do multiple energy-saving improvements to your home, but there is a yearly limit on tax credits you can receive in a year. Currently, you can only claim up to $1,200 in credits annually.
Savings in Addition to the Federal Tax Credit on Replacement Windows and Doors
There’s more good news! Not only will you get a credit on your tax return, but you will also start saving money on your monthly energy bills as soon as your new windows and patio doors are installed. Our customers tell us that they see a noticeable difference on their bills—especially in the hot summer months. Replacement windows really are a great investment in your home! They never go out of style and keep saving you money month after month.
Contact Custom Exchange to learn more about having energy-efficient replacement windows installed in your Danville home. We can schedule a free, in-home appointment during which you can have all your questions answered and receive a quote.