Energy efficient windows

[trberkovich]

I have installed and  will install more  energy efficient windows in 2023.  I think the U factor for the windows is 0.28.  The provider informs me that the U factor must be 0.25 or less to get any tax credit.  Is the vendor correct?  If not, how much tax credit can I get in 2023?

Tom B.

[LoriC17]

The Inflation Reduction Act has adjusted the Home Energy Credit for windows to30% up to a maximum of $600.00 with no lifetime limit thru the year 2032.

There is a yearly limit of $1200.00 for all energy property costs including purchase of doors, and home energy audits.

This credit is non refundable and the credit does not carryforward to future years. 

The windows must meet Energy Star Most Efficient requirements. 

You can find requirements listed at the following link:

https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-cons...

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[Tax Hero Niki]

Hi trberkovich,

Excellent question. So you want to confirm if the specific window you bought qualifies for the credit? Per the IRS, "Exterior windows and skylights that meet Energy Star Most Efficient certification requirements " will qualify. The U-Factor criteria is dependent on where the home is located. Check this page for the specifics: https://www.energystar.gov/products/residential_windows_doors_and_skylights/key_product_criteria

[ksolorzano]

I see this in the regs, but it appears that the current version of TT isn't properly allocating the credit as if 1.16.23.

[xmasbaby0]

@ksolorzano

Maybe you are waiting for some forms.  Click Review to see if you are missing some forms needed in order to e-file.

Many federal and state forms are not yet available.  Check here for form availability. The dates are subject to change.

Tax form availability tool,

No hurry to e-file since the IRS will not begin to accept/reject 2023 e-files until January 29.   And….a state return cannot be accepted until after the IRS accepts your federal return.

[ksolorzano]

No its not that, I data entered it but TT is lessening my deduction automatically per the old rules. I know it's no hurry, but it is an annoyance as I like to check things off my list as they come in and rely on TT to be correct, not something I have to circle back to.

[Vanessa A]

TurboTax is not updated for 2023 Energy Credits yet.  It is expected to be updated on January 24th.  You will need to wait until then to finish your taxes in order to get the correct energy credits.

[ksolorzano]

Good to know, thank for the response!