Is There Still a Tax Credit for New Windows in 2026? What Long Island Homeowners Need to Know

There is no federal tax credit for windows installed in 2026. The Energy Efficient Home Improvement Credit, known by its tax-code section as 25C, ended for anything placed in service after December 31, 2025. If you had windows installed in 2025, you can still claim it when you file this year. If you are replacing windows in 2026, the federal credit is gone, and anyone advertising it is working from an old brochure.

That is the headline. Here is what the credit was, who still qualifies, and what Long Island homeowners can still get.

What the 25C credit was

From 2023 through 2025, homeowners could claim 30 percent of the cost of qualifying energy-efficient improvements as a dollar-for-dollar reduction in federal income tax. For windows and skylights the credit was capped at $600 per year, for exterior doors at $250 per door and $500 total, and the whole "building envelope" category (windows, doors, insulation, air sealing) shared a $1,200 annual cap. Heat pumps had a separate $2,000 cap.

To qualify, windows had to meet the ENERGY STAR Most Efficient standard, which is stricter than plain ENERGY STAR, and starting with 2025 installations the manufacturer had to supply a product identification number (PIN) that goes on the return. The credit applied to the product cost only, not installation labor.

Why it ended early

The credit had been extended through 2032 by the 2022 Inflation Reduction Act. The One Big Beautiful Bill Act, signed July 4, 2025, repealed it for tax years after 2025, along with the 25D residential solar credit. Both ended on December 31, 2025. There is no federal replacement for residential window credits as of this writing.

Who can still claim it

If your new windows were installed and ready to use on or before December 31, 2025, you claim the credit on your 2025 federal return, which most people file in early 2026. You need:

• Your invoice showing the product cost separately from labor
• The manufacturer's certification statement and, for 2025 installs, the product PIN
• IRS Form 5695, Part II, filed with your 1040

The credit is non-refundable, meaning it reduces tax you owe but does not pay out beyond that, and it cannot be carried forward. If you installed windows in late 2025 and have not filed yet, talk to your preparer before you do.

A contract signed in 2025 for windows installed in 2026 does not qualify. The rule is when the windows went into the wall, not when you paid.

What Long Island homeowners can still get in 2026

With the federal credit gone, the incentives that remain are local and utility-based, and they come with conditions.

PSEG Long Island Home Performance program. PSEG Long Island's Home Performance with ENERGY STAR program lists a window rebate of $4 per square foot at market rate and $8 per square foot for income-qualified households, for windows with a U-factor between 0.20 and 0.32. The catch is significant: under the current program rules, windows are only allowed as part of a whole-house project that includes a cold-climate air-source heat pump plus insulation and air sealing. It is not a standalone window rebate. We cover the details, including the heating-fuel eligibility rules, in our PSEG window rebate guide.

NYSERDA EmPower+. New York's income-qualified program can cover insulation, air sealing and some heating upgrades at no or reduced cost for eligible households. Windows are rarely the lead measure, but a free energy assessment through PSEG or EmPower+ is a reasonable first step if you are replacing windows anyway.

New York State does not currently offer a state tax credit for replacement windows.

Manufacturer promotions and financing. Window manufacturers run seasonal promotions, and we offer financing on window projects. Neither is a tax credit, but either can change the math more than a $600 credit ever did.

Should you still replace windows without the credit?

Yes, if the windows need replacing. The 25C credit was worth at most $600 a year, a small share of any real window project. The reasons to replace windows did not change on January 1: drafty rooms, condensation between the panes, sashes that will not stay up, rotted sills, and heating bills on a house that still has its 1980s single-pane units.

What did change is that there is no deadline pressure. You can replace windows when it suits your budget and schedule, and we would rather you do it right than do it fast to beat a date.

What to look for on the window itself

The efficiency numbers that matter on Long Island are on the NFRC label stuck to every new window. U-factor measures heat loss; lower is better, and 0.27 or below is a good target here. Solar heat gain coefficient (SHGC) measures how much sun heat comes through; a moderate number, around 0.25 to 0.40, suits our mix of cold winters and humid summers. Low-E coatings, argon fill and warm-edge spacers are how a window gets there. We spec these on every replacement window we install.

Talk to us before you decide

If you are weighing a window project and the credit was part of the plan, call us. We will measure, price it honestly, tell you whether a PSEG assessment makes sense for your house, and give you a written quote with no deadline attached. (631) 972-0873 or request an estimate.