Available Incentives at a Glance
DMV homeowners replacing windows with energy-efficient models can potentially access four layers of financial incentives. Here is a summary before we dive into the details of each program.
Federal 25C Tax Credit
Annual Tax Credit
Tax credit (reduces tax owed)
Virginia State Programs
Sales tax exemption + utility rebates
Exemption + rebate
Maryland EmPOWER
Weatherization Rebates
Utility rebate program
DC DCSEU Rebates
Home Upgrade Rebates
Utility rebate program
These incentives can be combined. A Virginia homeowner can claim the federal 25C credit and a Dominion Energy rebate on the same window project. A DC homeowner can claim the federal credit and a DCSEU rebate. Stacking incentives is legal and encouraged -- you just cannot claim the same dollar twice.
Federal 25C Tax Credit for Windows
The Energy Efficient Home Improvement Credit (Internal Revenue Code Section 25C), expanded by the Inflation Reduction Act of 2022, provides a tax credit for energy-efficient home improvements including windows and skylights. This is the single most valuable incentive for most DMV homeowners.
Key Details for 2025-2026
Credit amount for windows and skylights
30% of product cost, subject to annual capsThe annual cap applies to exterior windows and skylights combined. Check IRS guidelines or ask us for current limits when planning your project.
Annual reset
Credit resets each tax year -- no lifetime capUnlike the pre-IRA version that had a lifetime cap, the current 25C credit resets annually. You can claim the credit in 2025 and again in 2026 if you phase your project across two tax years.
Overall 25C annual cap
Annual cap across all 25C improvementsThe window cap is within a broader annual cap for most 25C improvements (insulation, doors, windows, energy audits). Heat pumps have a separate annual cap. Ask us or your tax advisor for current limits.
Exterior doors credit
30% of cost, subject to per-door and total capsIf your project includes glass doors (sliding glass doors, French doors), these have a separate cap within the overall 25C limit. Plan your project to maximize both the window and door credits. We can help you optimize.
Who qualifies
Homeowners who own and live in the propertyThe home must be your principal residence or a residence you own and use (not rental property). New construction does not qualify -- the home must already exist. Both single-family homes and condominiums qualify.
What is covered
Product cost only (not installation labor)The 25C credit applies to the cost of the window or skylight product itself. Installation labor is not eligible for the credit. Ask your contractor to itemize product cost separately on the invoice.
ENERGY STAR Requirements to Qualify
To qualify for the federal 25C credit, windows must meet the ENERGY STAR Most Efficient criteria for 2025 -- not just the basic ENERGY STAR label. The DMV falls in the Northern climate zone for ENERGY STAR purposes. Here are the specific performance thresholds:
| Metric | ENERGY STAR (Basic) | ENERGY STAR Most Efficient (Required for 25C) |
|---|---|---|
| U-Factor | 0.30 or lower | 0.20 or lower |
| Solar Heat Gain Coefficient (SHGC) | 0.40 or lower | 0.25 or lower |
| Visible Transmittance | No requirement | No requirement |
| Air Leakage | 0.30 cfm/sq ft or lower | 0.30 cfm/sq ft or lower |
Important distinction: Not all ENERGY STAR windows qualify for the 25C tax credit. The windows must meet the stricter "Most Efficient" criteria. When shopping, look for the ENERGY STAR Most Efficient label or verify the specific U-factor and SHGC on the NFRC label. We can help you identify qualifying products during your consultation.
Virginia State Programs and Utility Rebates
Virginia Sales Tax Exemption for ENERGY STAR Products
Virginia offers a sales tax exemption on ENERGY STAR certified products during specific periods. While not a year-round benefit, purchasing qualifying windows during the exemption period saves 5.3% in state and local sales tax -- a meaningful savings on any window project.
The exemption typically occurs in October each year and covers a broad range of ENERGY STAR products including windows, doors, and skylights. Per-item purchase limits may apply. Check the Virginia Department of Taxation website for exact dates and current thresholds each year.
Dominion Energy Rebates (Northern Virginia)
Dominion Energy, the primary electric utility serving Northern Virginia, offers rebates through their Energy Conservation Programs. While window-specific rebates fluctuate year to year, the current offerings include:
Home Energy Assessment
Free to homeownersFree or reduced-cost home energy assessments that identify window upgrade opportunities and provide a roadmap for improving efficiency. The assessment report can support both rebate applications and tax credit documentation.
Weatherization Rebates
Varies by scope -- enhanced for income-qualified householdsRebates for comprehensive weatherization improvements that include window replacements as part of a whole-home approach. Income-qualified customers may receive enhanced rebates covering up to 100% of improvement costs.
Appliance and Equipment Rebates
Varies seasonallyWhile primarily focused on HVAC and water heating, Dominion periodically offers rebates on window and insulation improvements as part of seasonal promotions. Check the Dominion Energy website for current offerings.
Maryland EmPOWER and Utility Programs
Maryland EmPOWER Programs
EmPOWER Maryland is a statewide initiative requiring major utilities to offer energy efficiency programs to customers. For DMV-area Maryland residents (primarily Pepco and BGE service territories), EmPOWER programs provide rebates and incentives for energy-efficient home improvements including windows.
Pepco (Montgomery County, Prince George's County)
Home Performance with ENERGY STAR
Rebates available for comprehensive upgradesA comprehensive program that combines an energy audit with rebates for recommended improvements. Windows replaced as part of a whole-home upgrade may qualify for rebates. Requires a participating contractor to perform the audit and improvements.
Quick Home Energy Check-Up
Free assessmentA free or reduced-cost home energy assessment that identifies window and insulation deficiencies. The report provides specific recommendations with estimated savings and available rebates.
Income-Eligible Programs
Up to 100% of costs for qualifying householdsMaryland residents at or below 250% of the federal poverty level may qualify for enhanced weatherization assistance that can cover the full cost of window replacements in qualifying situations.
BGE (Baltimore County, Howard County)
BGE offers similar EmPOWER programs for customers in their service territory. While slightly outside the core DMV area, many DMV commuters own homes in BGE territory. BGE's Home Performance with ENERGY STAR program offers rebates for comprehensive energy improvements that include window upgrades.
DC Sustainable Energy Utility (DCSEU) Rebates
DCSEU Residential Programs
The DC Sustainable Energy Utility (DCSEU) administers energy efficiency programs for District residents. DCSEU offers several programs relevant to window upgrades, funded through the Sustainable Energy Trust Fund. These are rebates (not tax credits) and are applied after project completion.
Home Energy Conservation Kit
Free to residentsFree energy-saving products and a home energy assessment that identifies opportunities including window upgrades. The assessment report supports rebate applications for subsequent improvements.
Residential Rebate Program
Rebates for comprehensive home upgradesRebates for ENERGY STAR certified windows and doors installed by qualified contractors. Windows must meet ENERGY STAR criteria for the Northern climate zone. Rebate amounts vary by product type and efficiency level.
Low-Income Weatherization
Up to 100% of costs for qualifying householdsDC residents at or below 80% of area median income may qualify for the DCSEU Low-Income program, which can cover the full cost of energy-efficient window replacements as part of whole-home weatherization.
Solar for All (Related)
Varies by project scopeWhile focused on solar energy, some Solar for All participants may be eligible for bundled weatherization improvements including windows as part of their solar installation project.
How to Qualify: Documentation You Need
Claiming these incentives requires specific documentation. Prepare these items during your window project to ensure you can claim every dollar you are entitled to.
Manufacturer Certification Statement
For the federal 25C credit, the window manufacturer must provide a written certification that the product meets ENERGY STAR Most Efficient requirements. Most major manufacturers provide this on their website or include it with the product. Keep this with your tax records.
IRS Form 5695
File IRS Form 5695 (Residential Energy Credits) with your federal tax return. Part II covers the Energy Efficient Home Improvement Credit (25C). You will need the product cost (not installation), manufacturer EIN (if available), and the certification statement.
Itemized Invoice from Contractor
Ask your contractor to separate product cost from labor cost on the invoice. Only the product cost qualifies for the 25C credit. A single lump-sum invoice makes it difficult to determine the eligible amount and may be questioned by the IRS.
NFRC Label Information
Record the U-factor and SHGC from the NFRC (National Fenestration Rating Council) label on each window. These numbers prove the product meets ENERGY STAR Most Efficient thresholds. Photograph the labels before they are discarded during installation.
Utility Program Application
For state and utility rebates (EmPOWER, DCSEU, Dominion), file the rebate application within the program deadline -- typically 90 days after installation. Attach copies of the invoice, product specifications, and proof of payment.
Expert Glass Repair Makes This Easy
We provide itemized invoices with product costs clearly separated from labor, include manufacturer certification documentation for all ENERGY STAR products we install, and can walk you through the IRS Form 5695 process. We also help customers identify and apply for applicable utility rebates in their specific service territory.
Maximizing Your Savings: Strategic Planning
With smart planning, you can significantly increase the total incentives you receive for your window project. Here are strategies our DMV customers use.
Phase Your Project Across Two Tax Years
If replacing 10+ windows, complete half in December and half in January. You can claim the annual credit cap in each tax year instead of hitting the limit with a single project. This effectively doubles your available credit.
Potential savings: Double your annual credit
Combine Window and Door Credits
Windows and exterior doors have separate caps within the overall 25C annual limit. If you are replacing sliding glass doors and windows, ensure invoices separate the two categories to claim both caps.
Potential savings: Maximize combined credits
Stack Federal + State/Local Programs
The federal 25C credit reduces your federal tax liability. State and utility rebates are separate checks or account credits. You can claim all applicable programs for the same project without double-dipping issues.
Potential savings: Significant combined savings
Schedule During Virginia Tax-Free Period
If you are a Virginia resident, purchasing your windows during the October ENERGY STAR sales tax holiday saves 5.3% sales tax. The larger your window order, the more you save.
Potential savings: Meaningful additional savings
How Savings Stack Up: Multi-Window Replacement in the DMV
Contact us at (703) 679-7741 for a personalized savings estimate based on your specific project scope and location.
Frequently Asked Questions
Do replacement windows for rental properties qualify for the 25C tax credit?
No. The federal 25C credit only applies to your principal residence or a home you own and use as a residence. Rental properties and investment properties do not qualify. However, landlords may be able to deduct window replacement costs as a business expense or capital improvement on Schedule E.
Can I claim the tax credit if I install the windows myself?
Yes. The 25C credit is based on the product cost, not installation labor. If you purchase qualifying ENERGY STAR Most Efficient windows and install them yourself, you can still claim 30% of the product cost up to the annual cap. You still need the manufacturer certification statement and NFRC labels as documentation.
Is there a tax credit for just the glass (IGU replacement) or does it have to be a full window?
The 25C credit applies to complete window assemblies that meet ENERGY STAR Most Efficient criteria. Replacing just the insulated glass unit (IGU) within an existing frame does not typically qualify unless the resulting assembly is certified as meeting the ENERGY STAR Most Efficient requirements as a complete unit.
Do these programs have an end date?
The federal 25C credit under the Inflation Reduction Act is available through December 31, 2032. State and utility programs (EmPOWER, DCSEU, Dominion rebates) are subject to annual funding and program renewals. Utility programs may change terms or funding levels each program year.
What is the difference between a tax credit and a tax deduction?
A tax credit directly reduces the amount of tax you owe, dollar for dollar. A tax deduction reduces your taxable income, saving you a percentage of the deduction based on your tax bracket. The 25C credit is a tax credit -- the more valuable of the two.
Related Resources
Energy-Efficient Windows Guide
Understanding Low-E, double-pane, and argon-filled windows.
Window Replacement Services
Our residential and commercial window replacement services.
Insulated Glass Repair
Foggy window and failed seal repair for double-pane units.
Free Estimate
Get a free estimate for energy-efficient window upgrades.
Related Services
By the Expert Glass Repair Team
Serving the DMV since 2004 -- ENERGY STAR Partner
Expert Glass Repair installs ENERGY STAR certified windows and provides the documentation you need to claim federal tax credits and utility rebates. For a free consultation and estimate, call (703) 679-7741.
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