Are My Impact Windows Tax Deductible?

Impact windows can be a great investment for your home, but perhaps you’re unsure whether they’re the right investment right at this moment. With various government incentives to encourage more efficient, effective, and safe housing, it’s worth considering whether you can get part of the cost of your impact windows deducted from your federal or state taxes.

Let's take a look at available tax incentives for home improvement, which include impact windows at the federal level and at the state level within Florida—along with a few tips to make optimal use of these opportunities.

Federal incentives and deductions

The US government offers a number of tax incentives to encourage homeowners to upgrade to greener, more efficient home features. The laws which make impact doors and windows tax deductible allow homeowners to recoup up to ten percent of the cost of windows, skylights, and doors meeting Energy Star standards. You can claim up to $200 for windows or skylights and up to $500 for doors, but this cannot be based on the cost of installation.

To claim this one, you need to file Form 5695 with your taxes. You’ll also need to keep a copy of the Manufacturer’s Certification Statement along with any receipts or bills for the windows or doors you’re claiming - in case further proof of your purchase becomes necessary in an audit.

State Incentives

At the state level, Florida hasn't made impact windows tax deductible, but you can still shape your tax burden to your benefit by financing through one of Florida’s PACE programs. PACE, or Property Assessed Clean Energy, programs allow fixed-rate long-term financing of certain home improvement projects.

This financing is repayed as part of your property taxes, and thus you can avoid additional taxes against the improvement. 100% PACE financing on eligible projects through Ygrene, a national leader in PACE loans, is typically on a 20-year term at around 7% interest rate.

PACE provides low-cost, long-term financing for a variety of energy efficiency, storm protection, and other home improvement projects. Ygrene offers 100 percent financing on eligible projects.

So What Will it End Up Costing?

It can be difficult to give exact estimates for the cost of installing impact windows, even before including tax deductions and incentive programs, because different designs, differing numbers of windows, and various complications in the architecture or accessibility of your windows can all affect the bottom line.

Individual impact windows can range from a few hundred dollars to a few thousand dollars, depending on design and materials - even before you factor in labor.

If you would spend, for example, $500 for an impact window, you could deduct $50 at the federal level, or you could finance it through PACE and pay nothing up front, but ~$27 more on your property taxes each year for the next 20 years. You’ll also need to factor in labor, which will likely run from $30-60/hr, with the number of hours depending on the complexity of the installation. 

Of course, this only looks at the expense; replacing single-pane windows with double-pane impact windows can save hundreds of dollars annually on energy costs in Florida weather, plus potential improvements to your insurance premiums.

Find Out More 

Want to learn more about making impact windows tax deductible? Maybe you’re ready to see a few quotes for installation in your home. If you live in south Florida, it's time to contact Alco Windows and Doors to set up a free consultation!