There are still a few ways to cut the cost, and if your windows went in during 2025, you can still claim the federal credit on that year's tax return.
What happened to the federal credit?
For a few years, homeowners could take 30% off the cost of qualifying energy-efficient windows, up to $600 a year. The One Big Beautiful Bill Act, signed in July 2025, ended it early. Anything installed after December 31, 2025 doesn't qualify.
We still get calls every week from homeowners who read an older article and expected the credit. If you're planning a 2026 project, budget without it.
Did you replace windows in 2025? Don't leave money on the table
If your windows were installed by December 31, 2025, you can still claim the credit on your 2025 federal return:
- 30% of the cost, up to $600 for windows and skylights
- Up to $250 per exterior door, $500 max
- Products must meet ENERGY STAR Most Efficient standards
- You'll need the manufacturer's Qualified Manufacturer ID (QMID) for each product, which is new for 2025. Ask your installer for it.
- File with IRS Form 5695
Does Illinois have its own window tax credit?
No. Illinois doesn't offer a state income tax credit for windows. Any help here comes through your utility company or income-based programs.
What Illinois homeowners can still use in 2026
| Program | Who it's for | What you get |
|---|---|---|
| Nicor Gas Home Energy Efficiency Rebates | Nicor Gas customers | An instant discount on high-performance windows or low-e storm window inserts, as part of air sealing and insulation work. It has to be done by a Nicor program-approved contractor. |
| ComEd Energy Efficiency Program | ComEd customers, mainly income-eligible households | Free or reduced-cost weatherization, which can include windows |
| Illinois Home Weatherization Assistance Program | Households at or below 200% of the federal poverty level | Free air sealing, insulation and window repair through your local community action agency |
| Illinois Home Energy Rebates (HOMES / HEAR) | Low-income households to start | Not launched yet. Illinois has said there won't be retroactive rebates, so don't hold a project for it. |
Utility offers change during the year, so check the current terms before you sign anything.
Should you wait, or replace your windows now?
If your windows are 20+ years old, drafty, fogged between the panes or hard to open, we wouldn't wait. The credit was capped at $600, which is a small piece of most projects. Over a few Chicago winters, the real savings come from:
- Lower heating bills: modern low-e, argon-filled windows stop much of the heat loss older windows let through
- A more comfortable house: no more cold spots by the windows, less condensation, quieter rooms
- Less upkeep: no more scraping, painting and patching old frames
- Resale value: new windows are one of the first things buyers and inspectors notice
