Today TaxMama hears from Bill in San Antonio, TX who says, “I have been told that replacing windows in your residence may result in a tax credit. Can you tell me whether energy saving improvements to a residence are tax deductible or if generates a tax credit? Where in the tax code is this addressed.”
Hi William,
Don’t you trust your friendly, local neighborhood windows salesman? Just because you can’t find any IRS credits for windows?
Ah, got it! That’s because those are state and/or local tax credits. Also, your power company might be offering rebates to encourage the energy savings.
Sometimes, between state and local benefits, the refunds can pay for half the cost of the windows – so, do read up on what’s available in your state.
I found a rather useful site from the Efficient Windows Collaborative, a national association of efficient window companies. You can find information about laws from each state, including tax incentives.
https://www.ase.org/content/article/detail/2356
Here’s information on Texas’ policies about efficient windows
https://www.ase.org/uploaded_files/policy/states/Texas.doc
Incidentally, the various agencies usually budget a specific amount for the rebate programs each fiscal year (they usually end in June). So be sure to get your application for the rebates in as early in the fiscal year as possible.
And remember, you’ll find answers about lots of credits and other tax information, free. Where? Where else? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
- Efficient Windows Collaborative :: Click on your state to see your benefits & rebates
- File Download (1:40 min / 1.1 MB)
