tax credit for energy efficient windows

Forum|Forum|2 years ago
February 29, 2024
2 replies
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I entered into a contract with a window installation contractor on 12/29/2023 to install energy efficient (energy star) windows on my house, however, the windows won't be installed until March 2024. Because I entered into the contract in 2023, can I claim the tax credit on my 2023 tax return, or have to wait until the 2024 return?

DoninGA

Level 15

Since the installation will not be completed until March 2024, you can only enter the cost of the windows as an energy credit on the 2024 tax return you file next year.

Vanessa A

Level 15

No. You cannot claim the credit until the windows are actually installed. So since they won't be installed until this year, you will need to wait until you file your 2024 return to claim the Home Energy Credit.

The Home Improvement Energy Efficient Credit is a non-refundable credit

Worth up to 30% of costs with a maximum credit $2,000 for
- Air source heat pumps
- Heat Pump Water Heaters
- Biomass Stoves or Boilers
Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
- Doors, Windows and Skylights
- Insulation
- Natural Gas, Oil Propane Water Heaters
- Furnaces
- Boilers
- Central Air Conditioners
- Electrical Panel Upgrades
- Home Energy Audit (up to $150)
You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
This credit is a use it or lose it credit. If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
NOT available for new construction.