The Short Version
The IRS Section 25C Energy Efficient Home Improvement Credit lets you claim 30% of the cost of qualifying replacement windows, up to $600 per year.
If you spend $5,000 on new windows, that's $600 back at tax time. Spend $10,000? Still $600 — it caps there. But $600 is $600.
What Qualifies?
To claim the credit, your replacement windows must:
- Meet ENERGY STAR South-Central requirements: U-factor ≤ 0.40 and Solar Heat Gain Coefficient ≤ 0.25
- Be installed in your primary residence (not a rental or vacation home)
- Be purchased and installed in the tax year you're claiming — annual credit, you can claim again next year
Can I Stack It With Other Incentives?
Yes. The federal credit stacks with:
- CenterPoint Energy rebates (Houston's utility — check centerpoint.com for current offers)
- Manufacturer rebates (varies by brand and season)
- State of Texas incentives (check dsireusa.org for current programs)
The utility and manufacturer rebates typically come off the purchase price. The federal credit is then calculated on what you actually paid after those rebates.
Is It Worth It?
Absolutely — it's free money, as long as your windows meet the spec. For Houston homeowners, ENERGY STAR South-Central windows are the right choice regardless. The tax credit is the bonus.
When getting quotes, ask the contractor: "Are these ENERGY STAR certified for the South-Central zone?" If they can't answer that, find someone who can.
At Allwin Windows, all of our standard packages meet ENERGY STAR South-Central requirements. We provide the certification documentation you need for your taxes at no extra charge.
