Tax Credits for Doors and Windows: By The Numbers – DWM Magazine

The end of the 2016 tax season on Tuesday also marked the end of tax credits for homeowners who installed energy-efficient doors and windows, because Congress didnt vote to extend them. But how many people actually took advantage of those tax breaks in recent years, and which credits were the most popular?

According to numbers from the Internal Revenue Service (IRS), window replacements were the most common non-business energy property credit (Section 25C) claimed in both 2014 and 2013, surpassing insulation, furnaces and water heaters. In 2014, the most recent year for which IRS statistics are available, 726,903 filers claimed the credit for windows and skylights. In 2013, 843,265 people claimed the credit for those products.

In 2014, a total of 605,726 taxpayers claimed a credit for the installation of doors. In 2013, the number of credits claimed for doors was 678,220.

An analysis by the National Association of Home Builders (NAHB) shows that total claims for all energy-efficiency credits hit $5.8 billion in 2009 and climbed to $6.1 billion in 2010, then fell to $1.7 billion in 2011 and finally to $1.3 billion in 2012. Those totals include solar, wind and geothermal power upgrades, in addition to doors, windows, roofs, insulation and other products.

Changes to the rules explain why fewer people used the credits for fenestration products, according to NAHB. From 2009 through 2010, the credit for existing homes was 30 percent of the cost of retrofit doors and windows that meet or exceed Energy Star requirements up to $1,500. In recent years, Congress pared it down to 10 percent of the cost of retrofit doors and windows up to $200 for windows and $500 for doors, with a cumulative maximum for all years combined set at $500. The credit wasnt just for replacements on existing homes, either; additions to residences, such as a new sunroom, also qualified.

President Trump has vowed to overhaul the tax code, so its possible that tax credits for doors and windows could return in some form. However, it may not happen anytime soon. A report from The Hill says a push by Trump and Republican lawmakers to enact a comprehensive tax bill by August is highly aggressive to not realistic, according to Treasury Secretary Steven Mnuchin.

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Tax Credits for Doors and Windows: By The Numbers - DWM Magazine