If you’ve been thinking about replacing your old, drafty windows, there’s good news — your upgrade might actually put some money back in your pocket at tax time.
Many homeowners in Pennsylvania are surprised to learn that while there isn’t a state tax deduction for window replacements, there is a valuable federal tax credit you can claim for installing energy-efficient windows.
Let’s break down how it works, who qualifies, and how you can make the most of it.
So, Are Window Replacements Tax Deductible in Pennsylvania?
Not exactly — but don’t worry, that’s not a bad thing.
Pennsylvania doesn’t currently offer its own state-level tax deduction for window replacements. However, the federal government offers something even better: a tax credit for homeowners who install qualifying energy-efficient windows or skylights.
This comes under the Energy Efficient Home Improvement Credit (IRS Form 5695). It lets you claim up to $600 back for eligible windows and skylights added to your primary home.
What’s the Difference Between a Deduction and a Credit?
It’s easy to mix them up. A deduction lowers your taxable income, while a credit directly reduces the amount of tax you owe.
So, if you owe $2,000 in taxes and you qualify for a $600 credit — your tax bill drops to $1,400. That’s real savings.
Who Qualifies for the Credit?
Here’s the good news: most Pennsylvania homeowners will. To qualify, you’ll need to check a few boxes:
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The windows must be installed in your main home (not a rental or vacation property).
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They have to meet ENERGY STAR® Most Efficient standards.
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Installation has to be completed in the same tax year you’re claiming.
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Keep your receipts and manufacturer’s certificate — you’ll need them for proof.
Then, when you file your taxes, include IRS Form 5695 and claim the credit.
How Much Can You Save?
The federal credit allows you to claim:
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Up to $600 per year for window and skylight replacements.
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Up to $1,200 total for all energy-related upgrades (like insulation, doors, and windows combined).
And here’s the best part — this isn’t a one-time deal.
You can use the credit every year you make qualifying improvements. So if you do part of your home this year and finish the rest next year, you can still benefit both times.
Don’t Forget Utility Rebates
On top of federal credits, many Pennsylvania energy providers offer rebates for upgrading to high-efficiency windows and doors.
Programs like EnergySavePA (through PECO and PPL Electric) can give you extra cash rebates, often between $25–$75 per window, depending on the product’s efficiency.
Think of it as getting rewarded twice — once by your utility company and once by the IRS.
Before you file, double-check these details:
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Only installed windows count (not just purchased ones).
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Save all your paperwork — especially product labels and efficiency certificates.
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You won’t get a “double credit” from Pennsylvania — only the federal one applies.
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Rental properties don’t qualify unless you also live there part-time.
It’s always a good idea to run things by your tax preparer or accountant to make sure you’re claiming everything correctly.
Replacing your windows isn’t just about improving your home’s look and comfort — it’s also a smart financial move.
Even though Pennsylvania doesn’t have a state deduction, the federal energy-efficiency credit and local rebates can still help you save hundreds of dollars while cutting down your energy bills year-round.
If you’ve been waiting for a good reason to upgrade, this might be it.
Pro Tip: Before ordering your new windows, check that they’re ENERGY STAR® “Most Efficient” certified. That simple label can be the difference between getting the credit — or missing out.