U.S. ENERGY STAR Most Efficient Program Now Includes Skylights, Tubular Daylighting Devices That Can Qualify for Tax Credits
Are your products designed for use in the U.S. residential replacement market? Is your company looking for ways to encourage your residential customers to add more natural light, save money, and help save energy? Now you can help your customers in the U.S. to accomplish all those goals when they choose U.S. ENERGY STAR® Most Efficient skylights or tubular daylighting devices (TDDs) and ENERGY STAR Most Efficient Windows for residential replacement purposes in their principal residence. In turn, they may qualify for a U.S. tax credit for qualifying product purchases.
What’s considered as a principal residence? It’s defined as the residence where Americans spend most of their time each year. Site-built homes, manufactured housing, apartments, condominiums, and mobile homes all qualify as principal residences for the purposes of earning the tax credits available for qualifying purchases of ENERGY STAR Most Efficient window, skylight or TDDs, as long as it’s the residence where the American taxpayer spends the majority of his/her time each year.
The U.S. Environmental Protection Agency (EPA) created the first ENERGY STAR Most Efficient program for skylights and TDDs in April of 2023. The Most Efficient program recognizes the most efficient skylights and TDDs in terms of energy efficiency which have earned the ENERGY STAR. The Most Efficient program for windows has been offered for years. But 2023 marks the first time skylights and TDDs have been added to the program.
To qualify for the Most Efficient distinction, skylights and TDDs must meet the following specifications by U.S. climate zone:
Skylights, TDDs, and exterior windows that have earned the U.S. ENERGY STAR Most Efficient designation can qualify for tax credits approved for Americans making energy efficient home improvements to their primary residence starting in 2023. The tax credits were authorized by the Inflation Reduction Act (IRA) signed into law at the federal level in August of 2022.
For the purposes of this tax credit, new construction and rental properties do not apply.
For qualifying windows, skylights and TDDs, the tax credit is effective for qualifying ENERGY STAR Most Efficient products purchased and installed in replacement applications between January 1, 2023, through December 31, 2032.
That’s right — tax credits for ENERGY STAR Most Efficient residential windows, skylights and TDDs purchases have already been extended each tax year through 2032! Now’s the time to educate your customers about the about the U.S. tax credits available for ENERGY STAR Most Efficient residential windows, skylights and TDDs. Americans who purchase eligible products can claim up to 30 percent of the cost of qualifying windows, skylights and TDDs, and claim a maximum tax credit of $600.
Is your company encouraging your customers to use the new ENERGY STAR Most Efficient tax credits as they consider window, skylight and TDDs purchases? If not, it may be worth looking into as another way to help attract interest in energy efficient fenestration products and to drive potential sales.
Learn more about the U.S. ENERGY STAR Most Efficient Windows and Skylights program.