Colorado Window Tax Credits & Energy Code Updates

What homeowners need to know about federal window tax credits, ENERGY STAR® requirements, and Colorado’s evolving energy efficiency standards.

Last updated: 12/6/2025

ENERGY STAR® Window Tax Credits Explained (10-Year Program)

The federal Energy Efficient Home Improvement Credit—created under the Inflation Reduction Act—is a 10-year program running from 2023 through 2032. Homeowners can claim this credit every year, as long as the improvements meet the current requirements for that tax year.

How much can homeowners receive?

The credit covers 30% of eligible project costs, subject to annual limits:

✅ Up to $1,200 per year for most energy-efficient home improvements combined
❗ Windows and skylights are capped at $600 per year
✅ Doors are capped separately (up to $250 per door, $500 total)

This is where the confusion comes from:
$1,200 is the total annual cap, but windows only get up to $600 of that amount.

What windows qualify for the tax credit?

For 2025 and beyond, a window must:

✅ Be listed as ENERGY STAR® “Most Efficient”
✅ Be installed in an existing primary residence
✅ Meet all Northern Climate Zone performance requirements

Standard ENERGY STAR windows do not qualify.

Only products on the ENERGY STAR Most Efficient list are eligible for the federal tax credit.

Why Colorado Updated Its Window Energy Standards

Colorado has taken a strong stance on energy efficiency, particularly for windows and exterior products used in both new construction and remodeling. In response to rising energy costs, wildfire concerns, and Colorado’s challenging high-altitude climate, the state initially explored ultra-low U-factor and ENERGY STAR-only requirements for windows and doors. After extensive feedback from builders, manufacturers, and energy experts—especially regarding feasibility at Colorado elevations—the state pivoted to a more practical, performance-based approach. Today, Colorado’s standards focus on meeting defined U-factor thresholds that improve energy efficiency while remaining achievable for real-world homes and projects. This approach ensures replacement windows and exterior upgrades are energy-efficient, code-compliant, and built to perform long-term in Colorado’s unique climate without limiting homeowners to impractical or unavailable products.