Yes, home improvements such as new replacement windows are a eligible for a tax credit. For new windows, it's possible to get a tax deduction. The current tax credits for home improvements are expected to remain in their current form until 2032.
If you replaced your old windows with new energy-efficient windows, skylights, doors, or other qualifying items in 2022, you could be eligible to claim a windows tax credit of up to $600. Current energy tax credits for window replacement have been extended until December 31, 2032.
How you report this expenditure depends on the relative cost of the window replacement. If the cost is relatively low compared to the total value of the property, the IRS would consider this to be a repair rather than an improvement.
The IRS has issued lengthy regulations explaining how to tell the difference between repairs and improvements. These rules have been published here: Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property
If the windows are a repair, the cost would be included under the Home Office Deduction as a current year expense. If the value indicates this was an improvement, the cost would become another asset under the Home Office to generate depreciation expense.
You may also qualify for the Home Energy Credit, which doesn't make a distinction between repairs and improvements. Here are instructions on how to enter this info in TurboTax:
Click here for additional information on office deductions.
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