Window & Door Tax Credits (2026)

If you're planning to replace windows or doors in your DFW home, you may be eligible for a federal tax credit that puts money back in your pocket. The Inflation Reduction Act extended and expanded energy-efficiency tax credits through 2032, making this a particularly good time to invest in high-performance windows and doors.

This guide explains how the credit works, what qualifies, and how to claim it on your 2026 tax return.

Section 25C: Energy Efficient Home Improvement Credit

The federal tax credit for energy-efficient windows and doors falls under Section 25C of the Internal Revenue Code, officially called the Energy Efficient Home Improvement Credit. Here are the key details:

Credit Amount

• Windows and skylights: 30% of product cost, up to $600 per year
• Exterior doors: 30% of product cost, up to $250 per door and $500 total for all doors per year
• Overall annual cap: The 25C credit has an overall annual maximum of $3,200 across all eligible improvements (including HVAC, insulation, etc.)

Annual Reset

One of the most important changes from the previous version of this credit is that it now resets each year. There is no lifetime cap. If you replace windows in 2026 and more windows in 2027, you can claim the credit both years. This gives homeowners the flexibility to phase projects over multiple years and maximize total savings.

Credit vs. Deduction

This is a tax credit, not a tax deduction. A deduction reduces your taxable income, while a credit directly reduces the amount of tax you owe. A $600 tax credit saves you $600 in taxes, regardless of your tax bracket. This makes the credit highly valuable for all homeowners.

Qualifying Products

Not all windows and doors qualify for the tax credit. The products must meet specific energy performance criteria:

Windows and Skylights

To qualify, windows must meet the Energy Star Most Efficient criteria or the applicable Energy Star requirements for your climate zone. For the DFW area (South-Central climate zone), qualifying windows must have:

• U-factor: 0.30 or lower
• SHGC: 0.25 or lower

These requirements ensure the windows provide meaningful energy savings in our hot climate. For more on what these ratings mean, see our Energy Star Windows Guide and Best Windows for Texas Heat.

Exterior Doors

Qualifying exterior doors must meet the current Energy Star certification requirements. This applies to entry doors, patio doors, and sliding glass doors. The door must separate conditioned space from unconditioned space (interior doors between rooms do not qualify).

What Does NOT Qualify

• Storm windows (separate from the primary window)
• Interior doors
• Garage doors (unless they separate conditioned living space)
• Labor and installation costs (the credit applies to the product cost only)
• Windows or doors installed in new construction (the credit is for replacements in existing homes only)

How to Claim the Credit

Follow these steps to claim the energy-efficiency tax credit on your 2026 return:

Step 1: Verify Product Eligibility

Before purchasing, confirm that the specific window or door product is Energy Star certified for the South-Central climate zone. Ask your window company for the manufacturer's certification statement, which is a document confirming the product meets the energy requirements for the tax credit.

Step 2: Keep Your Documentation

Save the following records:

• Manufacturer's certification statement for each product
• Itemized purchase receipt or invoice showing the product cost separately from labor
• Proof of installation date (to confirm it falls within the tax year)
• The NFRC label information (U-factor and SHGC ratings)

Step 3: File IRS Form 5695

When you file your federal tax return, include IRS Form 5695 (Residential Energy Credits). Part II of this form covers the Energy Efficient Home Improvement Credit. Enter the cost of qualifying products and calculate your credit amount (30% of product cost, subject to the applicable caps).

Step 4: Apply the Credit

The credit amount from Form 5695 is transferred to your Form 1040. It directly reduces your tax liability. Note that this is a non-refundable credit, meaning it can reduce your tax bill to zero but cannot generate a refund beyond what you owe. If the credit exceeds your tax liability, the excess cannot be carried forward to future years.

Example: Calculating Your Credit

Here's a practical example for a DFW homeowner:

• You replace 12 windows at a product cost of $350 each = $4,200 in product costs
• 30% of $4,200 = $1,260
• The annual cap for windows is $600, so your credit is $600
• You also replace your front door at a product cost of $1,200
• 30% of $1,200 = $360, but the per-door cap is $250, so your door credit is $250
• Total credit for the year: $850

If you phase the project and replace half the windows in 2026 and the other half in 2027, you could potentially claim $600 for windows each year, totaling $1,200 in window credits over two years instead of $600.

Energy Star Certification Requirements

The Energy Star program is administered by the EPA and DOE. Products earn the Energy Star label by meeting performance criteria set for each climate zone. For Dallas-Fort Worth (South-Central zone), the key thresholds are:

Other Incentives and Savings

In addition to the federal tax credit, DFW homeowners may benefit from:

• Utility rebates: Some Texas electric providers offer rebates for energy-efficient home improvements. Check with your utility provider for current programs.
• Manufacturer rebates: Window and door manufacturers occasionally run promotions that can be combined with the federal credit.
• Property tax benefits: While Texas doesn't currently offer a specific property tax break for window replacement, improved energy efficiency can help manage overall home operating costs.
• Financing: Bradley James Windows & Doors offers flexible financing options that let you start saving on energy costs immediately while paying for your project over time.

Important Disclaimer

This guide is for informational purposes only and does not constitute tax advice. Tax laws and credit amounts are subject to change. Consult a qualified tax professional to determine your eligibility and ensure you claim the credit correctly. The IRS website (irs.gov) has the most current information on residential energy credits.

Get Started with Energy-Efficient Windows and Doors

At Bradley James Windows & Doors, every window and door we install meets or exceeds Energy Star requirements for the South-Central climate zone. We provide the manufacturer's certification statement with every project so you have the documentation you need to claim your tax credit.

We carry premium brands including Andersen, Anlin, and ProVia. Contact us for a free estimate to learn more about maximizing your savings.