When Your Exterior Improvements Work For Your Taxes

Home improvements such as new windows, skylights, or exterior doors are a popular way to claim a federal tax credit while updating your home. And your utility provider may even provide additional rebates through an energy savings program, lowering that pesky monthly bill.

Here's the deal:

Windows, doors, and skylights installed after 2005 "that earn the ENERGY STAR save energy, improve comfort, and help protect the environment" qualify for the tax credit, according to the Energy Star website.

So, installing new windows on your primary U.S. residence – if you replace a single window in your home, some or all of the windows, or if you install one where there wasn't one previously – counts, as does replacing your skylights or exterior doors. You can only claim this tax credit once, with a total limit of $500 or, for windows specifically, $200. And the credit applies only toward material costs, not installation costs.

Casement, egress, skylights and double-hung windows qualify as long as they meet Energy Star standards. Essentially, these energy-efficient windows reduce the amount of heat transfer in and out of your home. One of the most common types is the double glazed window, which has two panes of glass typically filled with argon gas as an insulator.  They are usually made with Low-E glass, too, which reflects heat back into your home.

This tax credit program doesn't expire until Dec. 31, 2032, so there's still time to claim it for your home if you haven't already. And if you're in Richmond with a  window, skylight or exterior door project in mind, give us a call at 804-258-6300. We'd love to help you out.