Window and Door Tax Credits in 2026: What Changed

No. The IRS says the federal 25C Energy Efficient Home Improvement Credit is not allowed for windows, doors or other property placed in service after December 31, 2025, and as of October 2026 the bill to restore it has not become law. Windows and doors installed by the end of 2025 can still be claimed on a 2025 return using Form 5695.

What happened to the 25C credit

Public Law 119-21, signed July 4, 2025, ended the Energy Efficient Home Improvement Credit early. The IRS FAQ on the law states that the credit will not be allowed for any property placed in service after December 31, 2025. That covers exterior windows, skylights and exterior doors, along with the other home upgrades the credit used to cover. If your new windows or doors were installed in 2026, there is no federal 25C credit for them under current law. This page is general information, not tax advice; ask your tax preparer about your situation.

What the old credit paid

From 2023 through 2025, the IRS page for the credit lists 30 percent of certain qualified costs, with limits of $600 total for windows and skylights, $250 per exterior door and $500 for all doors, inside an overall annual limit of $1,200 for most improvements. Windows and skylights had to meet ENERGY STAR Most Efficient criteria, and doors had to meet the ENERGY STAR requirements that applied. Many window sales pitches still quote these numbers, which is why it is worth knowing they no longer apply to 2026 installs.

If your windows went in during 2025

Work finished by December 31, 2025 can still qualify. The IRS says to file Form 5695, Residential Energy Credits Part II, with your return, and that you must claim the credit for the tax year when the property is installed, not merely purchased. That means a deposit paid in 2025 for windows installed in 2026 does not move the work into 2025. Keep the invoice and the product labels, and talk with your tax preparer before you file.

Will the credit come back

A bill to restore it exists. S. 3722, the Lowering Home Energy Costs Act, sponsored by Sen. Catherine Cortez Masto, was introduced January 29, 2026 and referred to the Senate Committee on Finance. Its text would repeal the section of Public Law 119-21 that ended 25C and restore the credit as if that section had never passed. As of October 2026, the only version on file is the introduced bill, and it has not become law. We will update this page if that changes, but do not plan a 2026 project around it.

Iowa utility rebates for windows and doors

If your power comes from MidAmerican Energy, its 2026 Home Discounts and Rebates page lists instant discounts on heat pumps, central air, furnaces and heat pump water heaters, and rebates on appliances and smart thermostats. It does not list any rebate for windows, doors, insulation or air sealing. Those 2026 rebates require equipment installed between January 1 and December 31, 2026. Other Iowa utilities run their own programs, so check your utility's site directly before you count on money back.

Reasons to replace without a credit

The credit was never the main reason to replace windows. The U.S. Department of Energy says windows can account for 30 to 40 percent of winter heat loss. The 2025 Cost vs Value report's Des Moines page lists vinyl window replacement at 70.3 percent of cost recouped at resale and a steel entry door at 234.1 percent. ENERGY STAR's Northern zone criteria for Polk County, a U-factor of 0.22 or lower, are still the right target for comfort. Our double vs. triple pane guide explains how to meet it.

How we handle tax credit questions

We do not promise tax credits, and we will not use one to push a sale. When we quote windows or doors, we tell you the product, the glass package and its rated U-factor so you know what you are buying. If a credit is restored later, that paperwork will be ready for your tax preparer. Until then, we focus on what you can count on: fewer drafts, no fogged glass and a door that seals. See our window installation and replacement service for how a project runs.

Common Questions

What to Do Next

If you are weighing new windows or doors this year, plan on the comfort and the resale, not a credit. Call or text Luke at (515) 901-3646 or request a free estimate, and we will price the options with their energy ratings.

See our windows service or call or text (515) 901-3646.