No. If you install new windows in 2026, they do not qualify for the federal 25C Energy Efficient Home Improvement Credit. The credit was repealed under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) and now applies only to qualifying property placed in service on or before December 31, 2025, according to the IRS. If your windows went in during 2025 before that deadline, you may still claim the credit on your 2025 return. For any 2026 install, that federal credit is off the table, but it is not the only way to lower the cost of the job, and we will walk through what is still real below.
We get this question a lot at HomeTrust Windows, mostly from homeowners in the Philadelphia and South Jersey area who remember hearing about a tax credit for energy efficient windows. It did exist, for three years. Here is what changed, what is still on the table, and how to document your project properly either way.
What the 25C Credit Used to Cover
From January 1, 2023 through December 31, 2025, the credit let homeowners claim 30% of qualifying upgrade costs, subject to annual caps set by the IRS:
- Windows and skylights meeting ENERGY STAR Most Efficient criteria: capped at $600 per year
- Exterior doors: capped at $250 per door, $500 total per year
- Combined limit across windows, doors, insulation, and home energy audits: $1,200 per year
For 2025 specifically, the IRS also required that any qualifying window, door, or other product carry a Qualified Manufacturer Identification Number (QMID), reported when filing. This is why we pushed documentation hard on every 2025 install. If you had windows installed by us in 2025 and need your manufacturer paperwork for tax filing, call us and we will pull it.
Why the Credit Ended
The One Big Beautiful Bill Act, signed into law July 4, 2025, rolled back a long list of clean energy tax incentives that had originally been extended through 2032 under the Inflation Reduction Act. The Energy Efficient Home Improvement Credit was one of them. The law set the hard cutoff at property placed in service through December 31, 2025, nothing available for 2026 and beyond. There is no phase-out and no grace period. If the install date on your paperwork says 2026, the federal window and door credit is not available for that project.
What Can Pennsylvania and New Jersey Homeowners Still Claim in 2026?
The federal 25C credit is gone, but it was not the only money on the table, and for most homeowners it was not even the biggest piece. Here is what is still real heading into a 2026 project:
Utility rebate programs. PECO and PSE&G both continue to run energy efficiency rebate programs independent of the federal tax code. Funding levels and dollar amounts shift throughout the year, so instead of quoting a number that may be stale by the time you read this, we check current program terms directly with the utility before every project and build any rebate into your quote and financing plan.
New Jersey Clean Energy Program (NJCEP). New Jersey homeowners can still access NJCEP incentives for insulation, air sealing, and whole-home efficiency work, including a Home Performance with ENERGY STAR pathway, with higher coverage for income-eligible homeowners through Comfort Partners. Caps are set by NJCEP and can shift, so we verify current terms before quoting rather than relying on last year’s numbers.
State financing. Zero-interest and low-interest financing tied to whole-home energy savings is still active in New Jersey. That is financing, not a rebate, but it lowers your effective cost the same way if you qualify.
Manufacturer and dealer promotions. These are not government programs, but HomeTrust runs seasonal financing offers on premium and energy efficient window lines that can matter more to your bottom line than a $600 tax credit ever did.
None of this replaces the old federal credit dollar for dollar. But “no tax credit” does not mean “no help paying for the job.” Check what your specific utility and state program offer right now, because those numbers move throughout the year in a way the old federal credit did not.
Does It Still Make Sense to Upgrade Your Windows in 2026?
Yes, for the same reasons it always did. The tax credit was a nice bonus, but it was never why replacement windows pay for themselves. Old, drafty windows lose heat in winter and let it in during summer, and that shows up every month on your PECO or PSEG bill whether or not a federal credit is attached to the fix. ENERGY STAR Most Efficient windows still cut air leakage and improve your home’s insulation value regardless of what the tax code says this year. If you were planning to replace your windows anyway, the loss of 25C is a real cost difference worth knowing about, but it is not a reason to put off a project that is overdue.
We still provide full documentation on every job, manufacturer spec sheets, NFRC energy performance labels, and ENERGY STAR certification where applicable, so if a new program comes along, state, utility, or federal, you will already have what you need to claim it. See the window lines we install on our premium windows page.
Get a Straight Answer on Your Project
If you are not sure what applies to your situation, whether it is a leftover 2025 install or a current utility rebate, call us at (215) 341-3331 for a free quote. We will tell you what is real and what actually saves you money on this job.
Frequently Asked Questions
Can I still claim the 25C tax credit if my windows were installed in December 2025?
Yes. As long as the windows were placed in service (fully installed) on or before December 31, 2025 and met ENERGY STAR Most Efficient requirements, they qualify on your 2025 return, subject to the $600 window cap and $1,200 combined annual limit, per the IRS. Windows installed starting January 1, 2026 do not qualify.
Is there any federal tax credit at all for windows in 2026?
No. The Energy Efficient Home Improvement Credit (25C) was the federal credit that covered windows, and it was repealed for property placed in service after December 31, 2025 under the One Big Beautiful Bill Act. There is currently no replacement federal credit for residential window replacement.
What windows qualified for the old 25C credit?
Windows and skylights had to meet ENERGY STAR Most Efficient certification, which is a stricter standard than basic ENERGY STAR qualification. Not every ENERGY STAR window met this higher bar, which is part of why documentation mattered so much.
Do PECO or PSE&G still offer rebates for new windows in 2026?
Both utilities continue to run efficiency rebate programs, and New Jersey homeowners also have NJCEP incentives available, but funding levels and dollar amounts change throughout the year and are set by the utility or state program, not by us. We check current terms before finalizing your quote so you are working with accurate numbers, not an outdated figure.
