Key updates to the Federal Tax Credits are summarized below.*

Key updates to the Federal Tax Credits are summarized below.*

Credit may be available under Section 25C of the Internal Revenue Code for qualifying products purchased and installed during the tax year.

Tax credit applies to the cost of the product only. The credit does not include installation costs.

As of 1/1/2023, tax credit is up to 30% of the amount paid up to the maximums listed below.

$1,200 total annual tax credit for any and all improvements, including other eligible items as listed in Section 25C of the Internal Revenue Code.

$600 total annual maximum tax credit for qualifying windows and skylights.

$250 total annual maximum tax credit for a single qualifying exterior door and $500 total annual maximum credit for all qualifying exterior doors.

Specific criteria for windows, skylights, and doors are listed below:

Windows and Skylights – As of 1/1/2023, windows and skylights must meet ENERGY STAR Most Efficient criteria to qualify for tax credits under Section 25C. For more information about Energy Star Most Efficient program and requirements by product and climate zone, see the EPA ENERGY STAR Most Efficient Website.

Exterior Doors – As of 1/1/2023, doors must meet the ENERGY STAR criteria applicable to the climate zone in which the products are installed.

** Note that on 10/23/2023, ENERGY STAR Windows Version 7.0 goes into effect, implementing new requirements for exterior doors. It is unclear what version of ENERGY STAR exterior doors must comply with to qualify for tax credits.

Windows and doors made simple recommends consulting with a tax advisor to determine whether products purchased for a particular application qualify. For more information about ENERGY STAR Version 7.0 and requirements by climate zone, see the ENERGY STAR Version 7.0 Website)

Learn More about ENERGY STAR

Find more information at www.energystar.gov or call (888) STAR-YES/ (888-782-7937)

How to Qualify for the Tax Credit:*

Purchase and install qualifying windows or patio doors beginning January 1, 2023 through December 31, 2032

Save your paid sales receipt and your product labels (showing the NFRC U-factor/SHGC ratings and ENERGY STAR) with your tax documents.

Save your product performance labels (showing the NFRC U/SHGC ratings and ENERGY STAR) from your window(s) or door(s) or take a photo of the labels on your windows(s) and door(s) and keep it with your tax documents. Andersen does not reprint product labels for tax credit verification.

Claim the tax credit associated with your qualifying purchase and installation on your Federal filing for the applicable tax year.

*This is a summary of certain tax credit elements related to windows, skylights and doors as set forth in Section 25C of the Internal Revenue Code as modified by the Inflation Reduction Act of 2022, Public Law No. 117-169, which was signed by the President on August 16, 2022, which among other things, extends the current tax credits with amendments in Section 25C of the Internal Revenue Code on eligible property purchased and installed through December 31, 2032.

Note:

Stout construction/ Windows and Doors Made Simple_ bears no responsibility for determining whether a particular purchase or application qualifies for the tax credit. Further, Andersen does not intend to and is not providing legal or tax advice. Andersen recommends that purchasers consult with their own tax advisor and/or the IRS to determine whether products purchased for a particular application qualify for the tax credit.

25C TAX CREDIT CHANGES

To qualify for a tax credit, a door or window product must meet ENERGY STAR®

certification by the manufacturer,

following guidelines from the Environmental Protection Agency (EPA).

The credit is allowed for qualifying property placed in service on or after January 1,2023, and through

December 31, 2032.

Qualified energy efficiency improvements

Residential energy property expenditures

Home energy audits

Understanding the NFRC Label on your window or patio doors