Energy Tax Credit
THE INFLATION REDUCTION ACT OF 2022 provides opportunities for federal tax credits and deductions that empower Americans to make homes and buildings more energy efficient to help reduce energy costs as part of the transition to cleaner energy sources.
Under the Act, federal income tax credits for energy-efficiency home improvements will be available through 2032. A broad selection of ENERGY STAR-certified products is eligible for the tax credits, including qualifying Associated Materials windows and sliding patio doors.
Qualifications
- Tax credit is available for windows and sliding glass doors purchased and installed between Jan. 1, 2023, and Dec. 31, 2032.*
- Eligible product(s) must meet performance requirements to qualify.
- Must be an existing principal residence owned by the taxpayer in the United States.
- New construction and rentals do not apply.
- The taxpayer may not include labor/ installation costs.
Credit Amount
Qualifying energy-efficient home improvement products can earn up to $1,200 in yearly tax credits for all building envelope components (i.e., windows/doors), home energy audits and energy property (i.e., central air conditioner). Homeowners can combine qualifying items each year to take advantage of the $1,200 tax credit during this 10-year program.
- Windows – Must meet ENERGY STAR Most Efficient requirements. Claim 30% of product costs up to $600 per year.
- Sliding Patio Doors – Must meet applicable ENERGY STAR requirements. Claim 30% of product costs up to $250 per door for a maximum of $500 per year.
Certain AM windows and sliding patio doors with select glass packages do meet requirements for ENERGY STAR Most Efficient (windows) and ENERGY STAR (sliding patio doors) to qualify for tax credits.
PLEASE NOTE: The ENERGY STAR program will change from Version 6.0 to Version 7.0 effective Oct. 23, 2023. Sliding patio doors are currently eligible for the tax credit under ENERGY STAR Version 6.0 criteria. Effective Oct. 23, 2023, sliding patio doors will need to meet ENERGY STAR 7.0 criteria to qualify for the tax credit. It's essential to check the current ENERGY STAR performance requirements specific to your customer's home and climate zone to determine the tax credit eligibility.* Please refer to the tech center for the exact performance numbers per individual product and options.
