If you were counting on a federal tax credit to help pay for new energy-efficient windows in 2026, there's important news: that credit is gone. But energy-efficient windows still make financial sense, and there are other incentives worth chasing. Here's exactly what changed, what you can still claim, and how to decide if the upgrade is worth it for your home.
The federal window tax credit ended January 1, 2026
The Energy Efficient Home Improvement Credit (Section 25C) — which let homeowners claim 30% of the cost of qualifying ENERGY STAR windows and skylights, capped at $600 per year — was repealed effective January 1, 2026 under the One Big Beautiful Bill Act signed in July 2025. The Inflation Reduction Act had originally extended this credit through 2032, but that extension was cut short. In plain terms: windows installed after December 31, 2025 do not qualify for the federal credit, and there is no federal replacement for it in 2026.
One exception: if you completed a qualifying window project in 2025, you can still claim the credit on the 2025 tax return you file in 2026. As always, confirm your situation with a tax professional.
What incentives still exist
The federal door closing doesn't mean zero help. Many states, cities, and — most commonly — local electric and gas utilities still offer rebates for energy-efficient windows or whole-home efficiency upgrades. These programs change often and are strictly local, so the place to check is your utility's website and your state energy office. ENERGY STAR certification is usually the qualifying bar, so choosing certified windows keeps those options open.
- Local utility rebates (electric/gas) — the most common source now
- State and municipal energy-efficiency programs
- Manufacturer and installer seasonal promotions
- ENERGY STAR certification is typically the qualifying requirement
Why efficient windows still pay off
Even without a tax credit, the case for energy-efficient windows is about your monthly bills and comfort. Double- or triple-pane glass with a low-E coating and argon fill dramatically cuts the heat that escapes in winter and pours in during summer, which lowers heating and cooling costs year-round. It also ends the cold drafts and hot spots near old single-pane windows, reduces condensation, and blocks UV that fades your floors and furniture. Those savings and comfort gains continue for the life of the windows.
How to find what's available where you live
Because incentives are now local, the fastest path is to ask installers who work in your area every day — they track which utility and state programs are active and which windows qualify. Tell us your city and we'll match you with licensed local pros who can recommend ENERGY STAR options and point you to any current rebates, with a free, no-obligation quote.
Frequently asked questions
Is there a federal tax credit for windows in 2026?
No. The Section 25C Energy Efficient Home Improvement Credit was repealed effective January 1, 2026, so windows installed in 2026 do not qualify for a federal credit. If you finished a qualifying project in 2025, you can still claim it on your 2025 return — check with a tax professional.
Are there any rebates left for energy-efficient windows?
Often yes, but they're local now — mainly through your electric or gas utility, and sometimes state or city programs. These change frequently and usually require ENERGY STAR certified windows, so check your utility's website or ask a local installer what's currently available in your area.
Are energy-efficient windows still worth it without the tax credit?
For most homes, yes. The value is in lower heating and cooling bills, fewer drafts, less condensation, and UV protection — benefits that continue every month for the life of the windows, independent of any tax incentive. A local pro can estimate the efficiency gain for your specific home.