Window Tax Credit 2026: Is There Still a Federal Credit for Replacement Windows?
No. There is no federal window tax credit for windows installed in 2026. The Energy Efficient Home Improvement Credit (Section 25C) covered qualifying windows, skylights and exterior doors, and it ended for property placed in service after December 31, 2025. Some state and utility rebates may still help with the cost, and window performance matters more than ever.
The Window Depot helps homeowners and contractors in Tucson, Phoenix, Chandler, Surprise, El Paso, Albuquerque and National City sort out what changed. This guide explains what happened to the window tax credit in 2026, where you might still find rebates, and how to choose energy efficient windows without a federal incentive.
What Happened to the Federal Window Tax Credit?
The One Big Beautiful Bill Act moved up the expiration date of Section 25C. According to the IRS, the credit isn't allowed for qualifying property placed in service after December 31, 2025.
Before that law, the credit had been scheduled to run into the 2030s. That's why some older articles and product pages still mention it as if it were available.
Only the federal credit ended. States, utilities and cities can still run their own incentive programs.
How Much Was the Window Tax Credit Before 2026?
For 2025, qualifying exterior windows and skylights were eligible for a credit of 30% of eligible costs, up to a combined $600 per year. Exterior doors had their own limit of $250 per door and $500 total.
These amounts were part of a larger $1,200 annual cap on home improvements. A separate $2,000 cap applied to certain heat pumps and related equipment, so a homeowner could claim up to $3,200 in a single year.
These numbers explain what changed. They aren't a guide to any 2026 tax benefit.
Does the 2025 Deadline Apply to When Windows Were Bought or Installed?
It applies to installation. The IRS bases eligibility on when the windows were placed in service, not when they were ordered or paid for. Windows bought in December 2025 but installed in January 2026 don't qualify for the federal credit.
If you're filing for a project completed in 2025, keep your receipts and the manufacturer's product information. Talk with a qualified tax professional about your situation.
For contractors: Make sure clients understand that the federal credit doesn't apply to windows installed in 2026, especially if an older quote or brochure still mentions it.
Can You Still Get Rebates for Replacement Windows in 2026?
Possibly. Some utilities in The Window Depot's markets have offered window rebates of their own. Salt River Project (SRP) in the Phoenix area runs a window replacement rebate, and El Paso Electric has ENERGY STAR window rebate programs for customers in Texas and New Mexico.
Programs vary by utility provider, so a neighbor in the next city over may not qualify for the same thing you do. Requirements also change from year to year.
For a broader look at what changed across home energy incentives, see The Window Depot's energy tax credits and incentives guide.
How Do You Find Window Rebates in Your Area?
Start with your electric utility's website, then check your state energy office for any statewide programs. Before you buy, confirm:
- The minimum performance ratings the windows must meet
- Whether you need preapproval before starting the project
- Any installation or contractor requirements
- The application deadline and the documents you'll need
- Income limits, if the program has them
A window marketed as "energy efficient" won't automatically qualify. Rebate programs usually set specific technical requirements, so compare the product's ratings with the program's rules.
What Should You Look for in Energy Efficient Windows Without a Tax Credit?
Look for measurable performance ratings instead of general marketing claims. The National Fenestration Rating Council (NFRC) puts standardized ratings on a label, which makes it easier to compare windows from different manufacturers side by side.
U-Factor
U-Factor measures how well a window keeps heat from passing through it. A lower number means better insulating performance.
Solar Heat Gain Coefficient (SHGC)
SHGC measures how much of the sun's heat comes in through the glass. In sunny, hot places like Tucson, Phoenix and El Paso, a lower SHGC can help limit heat gain on west- and south-facing walls.
Visible Transmittance (VT)
VT tells you how much natural light passes through the glass. It helps you balance daylight against heat control.
Air Leakage
The air leakage rating shows how much air passes through the window assembly. A lower rating means fewer drafts. See our guide to the window air leakage rating.
Why Does Climate Matter More Than the Tax Credit?
The best window for your home depends on where you live and how much sun the house gets. A window built for a cold, heating-focused climate may not be the right choice in the desert Southwest, where keeping heat out is usually the bigger concern.
In Arizona, El Paso and Albuquerque, strong sun and long cooling seasons make SHGC especially important. In National City, the milder coastal climate shifts the focus more toward comfort and natural light. Our guide on energy efficient windows for hot climates goes deeper on choosing for desert conditions.
Are Energy Efficient Windows Still Worth It Without the Tax Credit?
For many homeowners, yes. Well-rated windows can make rooms more comfortable and cut drafts, and they can lower heating and cooling costs. How much you save depends on your current windows, your climate, the new product, and how well the windows are installed.
Remember that the $600 federal credit was a small share of most whole-house window projects. The window's performance over the years you own it usually matters more than a one-time incentive.
Should You Replace Windows Now or Wait for a New Credit?
No new federal window credit has been announced to replace Section 25C. If your windows are damaged, drafty or hard to open, waiting on a possible future incentive probably isn't worth it.
If your windows work well and the update is mostly cosmetic, you have more flexibility on timing. Either way, base the decision on what your home needs and what fits your budget.
Frequently Asked Questions About the Window Tax Credit in 2026
Is there a federal window tax credit in 2026?
No. The federal Energy Efficient Home Improvement Credit ended for qualifying windows and skylights placed in service after December 31, 2025.
How much was the federal window tax credit?
For 2025, it was 30% of eligible costs for qualifying windows and skylights, up to $600 per year combined. Exterior doors had a separate limit of $250 per door and $500 total.
Can I claim the credit if I bought windows in 2025 but installed them in 2026?
No. Eligibility depends on when the windows were placed in service. Windows installed in 2026 don't qualify, even if they were purchased in 2025.
Are there window rebates in Arizona, Texas or New Mexico in 2026?
Some utilities offer them. SRP in the Phoenix area and El Paso Electric have run window rebate programs. Check your utility's current rules before you buy.
Are energy efficient windows still worth buying without the tax credit?
Often, yes. Windows with strong U-Factor, SHGC and air leakage ratings can improve comfort and help manage heat in desert climates, with or without a federal incentive.
Shop Energy Efficient Windows at The Window Depot
The federal window tax credit is gone for 2026, but choosing the right window for your climate still pays off. Compare vinyl windows and their performance ratings at The Window Depot in Tucson, Phoenix, Chandler, Surprise, El Paso, Albuquerque and National City. Bring your utility's rebate requirements with you, and the staff can help you find products that meet them. Find your nearest store.
This article is for general information and isn't tax advice. Talk with a qualified tax professional about your situation.

