Federal Tax Credit - Energy Efficient Home Improvement Credit - Frequently Asked Questions (FAQs)

Sep 19, 2026

Kirsch’s FAQ explains the Federal Tax Credit for Energy Efficient Home Improvement and how homeowners can use it to offset eligible upgrade costs. It covers qualifying installation requirements for existing primary residences, key credit rules under the Inflation Reduction Act (2022) for 2023–2032, the 30% credit rate with a $1,200 annual maximum, and how the credit differs from rebates. The FAQ also clarifies what documents to retain and submit, including the Manufacturer’s Certification Statement and typical IRS filing (often Form 5695).

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Federal Tax Credit Overview

Eligibility and Qualifying Products

How the Credit Works

Credit Amount and Annual Limits

Claiming the Credit and Required Submissions

FEDERAL TAX CREDIT: Energy Efficient Home Improvement Credit Frequently Asked Questions (FAQs) Please review the Manufacturer’s Certification Statement for specific qualifying product details and restrictions, and also consult with your tax advisor to determine other eligibility requirements for claiming this particular Federal Tax Credit opportunity. Below are answers to some FAQs. Q: What is the Federal Tax Credit for Energy Efficient Home Improvement Credit? A: To help provide incentives for homeowners to make energyefficiency home improvements, the federal government offers tax credits as a way to offset the costs of these upgrades. Per the Inflation Reduction Act of 2022, the Federal Tax Credit is available on an annual basis from January 1, 2023–December 31, 2032. • Qualifying product(s) must be installed in an existing residential primary residence (no secondary homes or rental properties) by December 31 of the qualifying tax year. Q: How does the Federal Tax Credit Work? A: This is not cash in your hand (like a rebate, which gives you cash back after you’ve made a purchase), but a tax credit—which is an amount of money that you subtract directly from the taxes that you owe. Q: Which products currently qualify for the Federal Tax Credit? A: Certain Cellular Shades with qualifying fabrics, operating systems and size combinations, that are inside mount over double pane, clear glass windows currently qualify for the Federal Tax Credit. For specific qualifying products, details and restrictions, refer to the Manufacturer’s Certification Statement. • Products must be installed by December 31 of the qualifying tax year. • Qualifying products meet applicable energy performance standards as identified in the International Energy Conservation Code (IECC) for U-factor and Solar Heat Gain Coefficient for all climate zones. Q: What is a Manufacturer’s Certification Statement? A: A Manufacturer’s Certification Statement is a signed statement from Kirsch certifying whether the specific product purchased by you qualifies for the tax credit, subject to specified product details and restrictions. Q: How much do you receive for the Federal Tax Credit? A: Qualifying products are eligible for a tax credit equal to 30% of the “purchase price” of the products, up to a maximum annual amount of $1,200 . • Applicable “purchase price” is the amount paid by you for the product(s), including sales tax, and does not cover the costs for measuring or installing of qualifying products. If sales tax is charged on both the shade and the installation labor, only the portion of the sales tax applicable to the shade, and not any sales tax applicable to the labor, is included in the “purchase price” that you apply to the 30% . Q: What is the maximum Federal Tax Credit amount I can get each qualifying tax year? A: Even if you purchase multiple qualifying products in a year, the maximum amount of the Federal Tax Credit during any taxable year is $1,200 . For example, if you spend up to $5,000 during the year on a single qualifying product or multiple qualifying products, you are only eligible to receive 30% up to a $1,200 cap (30% of $5,000 = $1,500 and you receive $1,200 under the tax credit) . Consult with your tax advisor to determine your eligibility for this tax credit. Q: What is the time frame during which the Federal Tax Credit can be earned on qualifying Kirsch products? A: Starting January 1, 2023–December 31, 2032, the $1,200 annual limit applies, meaning you can claim the maximum credit for each taxable year, for purchases in those years, through year-end 2032. Note, however if you purchase a qualifying product in one tax year and install it in your primary residence in a subsequent tax year, you are eligible to receive the tax credit only for such subsequent tax year. But, regardless of when a product is installed the qualification of any product for the credit is determined based upon the Qualify

FAQs

What is the Federal Tax Credit for Energy Efficient Home Improvement?

The Federal Tax Credit provides incentives for homeowners to make energy-efficiency home improvements by subtracting a credit directly from taxes owed. Under the Inflation Reduction Act of 2022, it is available annually from January 1, 2023–December 31, 2032.

How does the Federal Tax Credit work compared with a rebate?

It is not cash back after purchase. A tax credit is an amount that directly reduces the taxes you owe.

How much can I receive and what is the annual maximum?

Eligible products receive a tax credit equal to 30% of the purchase price, up to an annual maximum of $1,200. Even with multiple qualifying products, the total during any taxable year is capped at $1,200.

Sep 19, 2026

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