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Level 1
January 25, 2022
Question

Do new windows qualify for a tax credit?

  • January 25, 2022
  • 3 replies
  • 14 views
I installed new windows in my primary residence in 2021. Do I qualify for a Nonbusiness Energy Property Credit?

3 replies

ColeenD3
Level 15
January 25, 2022

Under the Residential Energy Efficient Property Credit, you can get a federal tax credit for installing alternative energy equipment, such as solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property.

If you made energy efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.

 

You can enter them in the Deductions & Credits section:

  1. Open or continue your return, if you don't already have it open.
  2. In TurboTax, search for energy improvements. (Don't search for energy credit as this will take you to the wrong place.)
  3. Click the Jump to link in the search results.
  4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes and continue. Follow the instructions.
    1. Page 1 of the interview covers solar, geothermal, wind, and fuel cell. If you're looking for other improvements, like doors, windows, furnace, air conditioning, or heat pump, just keep going to the next page.
Level 2
February 23, 2022

I went through and entered information for the energy tax credit for exterior windows on a home.  The credit states 10% up to $500.  I have entered the cost of just over $5000 and the credit shows up as only $200.  What have I done wrong?

 

Level 10
February 23, 2022

Nothing.  You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

  • A maximum of $200 can be for windows.
  • The maximum tax credit for a furnace circulating fan is $50.
  • The maximum credit for a furnace or boiler is $150.
  • The maximum credit for any other single residential energy property cost is $300.

Energy Tax Credit