New Windows 2022

[cnlapin]

I am purchasing and installing new windows in 2022. The total cost of purchase + installation will be about $6,000. What sort of tax credit can I expect from this, and how to I go about filing/obtaining it?

[kdevere · Accepted solution]

The credit was extended to 2022 with the Inflation Reduction Act, and is worth 10% of the costs of installing certain energy-efficient insulation, windows, doors, roofing, and similar energy-saving improvements in your home. There is a $200 lifetime limit for new windows.  However, beginning in 2023, there are expansions to the credit:

The annual limits for specific types of qualifying improvements will also be modified – and for the better. Beginning in 2023, they will be:

• $150 for home energy audits;
• $250 for an exterior door ($500 total for all exterior doors);
• $600 for exterior windows and skylights; central air conditioners; electric panels and certain related equipment; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers

So the max for 2022 would be $200 but if you decided to wait until 2023 on the purchase and installation, the cap would be $600 for your new windows.