For Designers

Utility Incentives

The following gives an overview of utility and State programs that can help you to finance improvements in window energy efficiency.

Programs are listed by state and by the specific energy supply companies that administer the programs. For detailed information about each program, please refer to the web links in the list.

Some programs aim to improve home energy performance in general, others explicitly focus on window energy performance. For details about the eligibility criteria of specific programs, please contact the respective utility sponsors.

The Federal Tax Credit for Residential Energy-Efficiency Improvements

Homeowners can claim a tax credit if they upgrade their homes with energy efficient building envelope components, including exterior windows, doors and skylights. The fenestration-relevant basics of the tax credit are:

  • For window, doors and skylight replacements installed in 2009 and 2010
  • Thirty percent of the purchase price (not including installation costs)
  • Products must be installed in primary residence
  • Maximum credit is $1,500 for all qualifying measures combined (includes roofing, insulation, HVAC, etc.)
  • Products need manufacturer's statement to qualify

Qualified products
Windows, doors, and skylights need to have a U-factor of 0.30 or less and an SHGC of 0.30 or less and must come with a manufacturer's certification statement so that the homeowner can claim the tax credit. Such a statement should include the following:

  1. a) Name and address of the manufacturer
  2. b) Identification of the product type, model number, etc.
  3. c) A statement that the component is an Eligible Building Envelope Component that qualifies for the credit allowed under §25C of the Internal Revenue Code
  4. d) Indication of the climate zones for which the window qualifies in terms of the tax credit
  5. e) A special signed declaration by an authorized person stating the correctness of the certification statement

Claiming the tax credit
To claim the tax credit, homeowners should keep the manufacturer's certification statement with their records. For improvements made in 2009, the tax credit can be claimed with the 2009 version of IRS Form 5695, which will be available in late 2009 or early 2010.

IRS information on the tax credit
The information on this page is not intended to constitute legal or tax advice. More comprehensive information will become available on the IRS web site.