Federal Energy Efficient Home Improvement Tax Credit
Under the Inflation Reduction Act (IRA), from January 1, 2023 through December 31, 2032, homeowners can claim:
30% tax credit on qualified energy‑efficient home improvements—including windows—up to annual limits
Window purchases and installations count toward the $1,200/year cap on building envelope improvements (windows/skylights/doors, insulation, air sealing) IRS.
The window portion of that cap is up to $600/year.
Labor for installing windows does not qualify under the envelope component rules; however, recent guidance suggests that labor may be covered when tied to qualifying residential energy property (appliance upgrades) but not for envelopes like windows IRS.
Example: If you spend $4,000 on high‑efficiency windows and have no other improvements that year, you’d get $600 credit (30% of the costs, limited to $600 max for windows and door/skylight improvements).
🌿 Utah Utility Rebates for Energy‑Efficient Windows
Dominion Energy (ThermWise Weatherization Program)
Offers $2.50 per square foot rebate for windows with a U‑value ≤ 0.22 (Insulated, high‑performance frames)
Installation is not required to be done by an authorized contractor if self‑installed, although documentation standards apply (NFRC labels or detailed spec invoices)
Submit applications within 180 days of installation; rebate issued within ~14 business days upon approval
Rocky Mountain Power (Wattsmart Homes program)
Offers up to $3.00 per square foot rebate on qualifying high‑efficiency windows new installations in Utah
Specific performance thresholds may apply, and a trade‑ally installation may be required depending on the program rules.
📝 Key Steps & Tips
Choose high‑efficiency windows: U‑value ≤ 0.22 and ENERGY STAR or better. Utah is in the Northern climate zone: U‑factor ≤ 0.30 but aim lower (≤ 0.25) for max savings
Save documentation: NFRC labels or manufacturer specs, square footage, timestamped receipts, Rocky Mountain or Dominion account number.
Act in time: Dominion requires you to apply within 180 days of installation; Rocky Mountain may have its own timeframe.
Claim federal credit: File IRS Form 5695. Ensure windows meet ENERGY STAR Most Efficient criteria and documentation standards, including manufacturer PINs starting 2025
Combine wisely: The federal tax credit disallows using other federal rebates (e.g. a future state HER program) for the same improvement—but utility rebates are fine alongside the federal tax credit
✅ Bottom Line
Replacing windows in your Utah home with high-efficiency units can unlock:
Utility rebates:
Dominion Energy: ~$2.50/sq ft
Rocky Mountain Power: up to ~$3.00/sq ft (if available locally)
Federal tax credit:
Up to 30% of window cost, capped at $600 per year under the Home Improvement Credit.
Future IRA-enabled Utah rebate programs:
May provide large rebates if part of a broader retrofit—but not yet available.
By carefully picking efficient products, documenting properly, and combining utility rebates with the federal tax credit, you could enjoy net‑zero cost window upgrades or even a positive return. Let me know if you'd like help estimating your square footage or running numbers for your specific home!