The Truth About Window Covering Rebates, Tax Credits, and Energy Incentives

The Truth About Window Covering Rebates, Tax Credits, and Energy Incentives in 2025

As energy costs continue to rise across Jeffersonville and the Louisville metro area, homeowners are increasingly looking for ways to improve efficiency and reduce monthly bills. What many don’t realize is that the right window treatments can significantly impact your home’s energy performance—and there are substantial tax credits and rebates available to help offset the investment.

At WindowDecor, we’ve helped thousands of homeowners navigate the sometimes confusing world of energy rebates and tax credits since 1993. As a family-owned business serving Jeffersonville, Louisville, and surrounding areas for over 30 years, we’ve seen firsthand how the right window coverings can transform both the comfort and energy efficiency of local homes.

This guide cuts through the confusion to provide clear, accurate information about the rebates, tax credits, and incentives available in 2025 for energy-efficient window treatments in our region.

Understanding the 2025 Energy Efficient Home Improvement Tax Credit

The federal government offers significant tax incentives for energy efficiency improvements through the Inflation Reduction Act’s Energy Efficient Home Improvement Credit (25C). This program provides homeowners with opportunities to claim tax credits for qualifying energy-efficient home improvements, including certain window treatments when they meet specific criteria.

Key Facts About the Energy Efficient Home Improvement Tax Credit:

• Credit Amount: Homeowners may qualify for an annual tax credit of up to 30% of costs for qualifying energy-efficient home improvements
• Annual Limits: The maximum annual credit every year is capped, but you can claim the credit across multiple tax years
• Tax Form: To claim an energy efficient home improvement tax credit, you must file Form 5695 (Residential Energy Credits) with your federal income tax return
• Eligible Properties: Your home must be located in the United States and be your primary residence where you live most of the time (may include second homes in some cases, but not rental properties)
• Timing: Improvements must be installed between January 1, 2023, and December 31, 2032

Window Treatments That May Qualify for Federal Tax Credit

While the Energy Efficient Home Improvement Tax Credit primarily focuses on major improvements like windows, exterior doors, skylights and insulation materials, certain window treatment solutions may qualify when they serve as effective insulation systems:

• Cellular/Honeycomb Shades: These shades are designed to provide significant insulation value with their honeycomb structure that traps air
• Exterior Window Coverings: Some exterior shading systems that significantly reduce energy costs through solar heat gain reduction
• Motorized Systems: Smart home integration with products like Hunter Douglas PowerView® or Graber motorized shades that demonstrably improve energy management

Indiana State Energy Incentives for Jeffersonville Homeowners

Beyond federal tax credits, Indiana offers several programs that can benefit homeowners investing in energy-efficient window treatments:

Indiana Energy Assistance Programs

• Home Energy Assistance Program: While primarily focused on low-income households, this program sometimes includes weatherization assistance that can cover energy-efficient window coverings
• Utility Company Rebates: Many Indiana utility providers offer rebate programs for energy efficiency improvements, including certain window treatments
• Property Tax Deductions: Some energy efficiency improvements may qualify for property tax benefits through the Department of Energy initiatives

How to Save Energy and Qualify for Indiana Incentives

To maximize your chances of qualifying for Indiana-specific incentives:

1. Consider scheduling home energy audits through your utility provider
2. Look for window treatments that meet energy star certified standards
3. Keep detailed documentation of all energy efficiency improvements
4. Consult with the Consortium for Energy Efficiency for current programs
5. Work with experienced professionals like WindowDecor who understand local requirements

Kentucky Incentives for Louisville Metro Area Residents

For our Kentucky customers in the Louisville area, different incentives may apply:

Kentucky Energy Efficiency Programs

• Kentucky Home Performance Program: Offers rebates for energy efficiency improvements
• LG&E and KU Energy Rebates: Specific rebates for energy-efficient home upgrades
• Local Tax Incentives: Some municipalities offer property tax incentives for energy improvements that reduce energy consumption

Clean Energy Initiatives in Kentucky

Kentucky has been expanding its clean energy and energy efficiency programs, with new home energy rebates expected to become available throughout 2025. These programs often include incentives for improvements that enhance residential energy efficiency.

Local Utility Company Rebates in Jeffersonville and Surrounding Areas

Some of the most accessible incentives come from local utility companies serving our region:

Duke Energy Incentives

Duke Energy customers may qualify for:

• Smart $aver® program rebates for energy-efficient home improvements
• Home energy audits that can recommend window treatment upgrades
• Seasonal rebates for energy-saving products

Clark County REMC Programs

Clark County REMC offers:

• Energy efficiency rebates for qualifying improvements
• Home energy assessments that can identify cost-effective energy efficiency improvements
• Educational resources on how to save energy through proper window treatments

Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU)

For customers across the river in Kentucky:

• Rebates for energy-efficient home improvements
• Seasonal promotions for energy-saving products including window treatments
• Energy analysis programs to identify areas where you can reduce energy costs

How to Qualify for Window Treatment Tax Credits and Rebates

To maximize your chances of qualifying for these financial incentives, consider these key factors:

1. Product Selection Matters

Not all window treatments are created equal when it comes to energy efficiency. Products most likely to qualify include:

• Honeycomb/cellular shades with multiple cell layers that provide insulation
• Exterior solar screens that block heat before it enters the home
• Plantation shutters with proper installation for minimal air gaps
• Energy-efficient blinds and shades with certified performance ratings
• Hunter Douglas products with energy efficiency certifications
• Graber window treatment options with energy-saving features

2. Professional Installation Documentation

Many incentive programs require professional installation with proper documentation. WindowDecor provides all necessary paperwork, including:

• Detailed product specifications including sales tax
• Energy performance ratings
• Professional installation certification
• Dated receipts and warranty information
• Documentation needed to file Form 5695 correctly

3. Timing Your Purchase

Some incentive programs have limited funding or specific enrollment periods. Our consultants stay updated on current programs to help you time your purchase optimally within the applicable tax year.

The Application Process: What You’ll Need to Claim the Credit

While each program has its own requirements, most will ask for:

1. Product Documentation: Specifications showing energy efficiency ratings
2. Proof of Purchase: Dated receipts from a qualified retailer/installer including sales tax
3. Installation Verification: Documentation that products were professionally installed
4. Before/After Energy Assessment: Some programs require energy audits
5. Tax Forms: For federal incentives, you must file Form 5695 with your tax return

If you’re a landlord or other property owner who doesn’t live in the home, different rules may apply regarding your eligibility for the tax credit. The Internal Revenue Service provides specific guidance on how to claim the credit if you’re a landlord.

Understanding How the Tax Credit Works

The energy efficient home improvement tax credit works as a dollar-for-dollar reduction in the amount of tax you owe, not just a deduction from your taxable income. This makes it particularly valuable. Key points to understand:

• You can get back more on the credit than you owe in taxes (the credit is partially refundable)
• You can claim the maximum annual credit every year until the program expires
• The credit applies to reasonable property costs and certain energy efficient improvements
• A newly constructed home typically doesn’t qualify for these specific credits
• Your home must be owned and used as your residence

How WindowDecor Helps Maximize Your Energy Tax Credit

As a family-owned business with deep roots in Jeffersonville and the Louisville metro area, we’ve developed a comprehensive approach to helping customers navigate incentive programs:

Our Energy Efficiency Consultation Process

When you schedule a free consultation with WindowDecor, our experts will:

1. Assess your home’s specific energy challenges
2. Identify which window treatments would provide the greatest efficiency improvement
3. Explain all potential rebates and incentives you might qualify for
4. Provide clear documentation of expected energy savings
5. Help you understand which products are eligible for the tax credit
6. Ensure you have all documentation needed to claim the maximum annual credit

Design Journey and Preview Window Treatments

Our design process includes using the Graber window treatment visualizer to help you see exactly how different energy-efficient options will look in your home. This technology allows you to preview window treatments before making your decision.

Real Savings from Real Customers

Our customers throughout Jeffersonville, Clarksville, and Louisville have experienced significant benefits:

“WindowDecor helped us select cellular shades that qualified for our utility company’s rebate program. Between the rebate and our reduced energy bills, the shades practically paid for themselves within 18 months.” – Rebecca M., Jeffersonville

“We were skeptical about how much difference window treatments could make, but after installing plantation shutters recommended by WindowDecor, our summer cooling costs dropped by nearly 20%. The tax credit was an added bonus!” – Joshua G., Louisville

Energy Star and Energy-Efficient Window Treatments

The Energy Star program, administered by the Department of Energy and EPA, sets standards for energy efficiency. While window treatments themselves aren’t typically Energy Star certified, they can complement Energy Star most efficient windows and help achieve significant and cost-effective energy efficiency improvements.

How Window Treatments Enhance Energy Star Windows

Even the most energy-efficient windows can benefit from proper window treatments:

• Cellular shades can add R-value (insulation) to windows
• Exterior shades can block solar heat gain before it reaches the window
• Properly installed shutters can reduce air infiltration around window frames
• Motorized systems can automatically adjust based on time of day and sunlight exposure

Warning: How to Avoid Rebate and Tax Credit Scams

Unfortunately, whenever financial incentives are available, scammers develop schemes to exploit homeowners. Here are red flags to watch for:

Common Scam Tactics

• Too-Good-To-Be-True Offers: Claims of 100% coverage through energy property credits
• Pressure Tactics: Pushing for immediate decisions about “limited time” government programs
• Upfront Fees: Requiring payment to “process” your rebate application
• False Certification: Claims about products being “certified” for credits they don’t qualify for
• Impersonation: Scammers claiming to represent utility companies or the Internal Revenue Service

Protecting Yourself

• Work with established, reputable companies (like WindowDecor, serving the area since 1993)
• Verify rebate programs directly through official utility company or government websites
• Never pay upfront fees for rebate processing
• Get all claims about tax credits and rebates in writing
• Consult with a tax professional about tax credit eligibility

Air Sealing Materials or Systems and Window Treatments

While the tax credit explicitly covers air sealing materials or systems, properly installed window treatments can complement these efforts:

• Custom-fitted shutters can reduce drafts around windows
• Properly installed window treatments can minimize air leakage
• Side tracks on certain shades can improve the seal around window openings
• Layered window treatments can provide additional insulation

Frequently Asked Questions About Window Treatment Incentives

Do all window treatments qualify for energy incentives?

No. Only certain types with proven energy efficiency benefits typically qualify. Honeycomb shades, exterior shades, and properly installed plantation shutters are most likely to meet requirements for energy efficiency improvements.

How much can I save through these incentives?

Savings vary widely depending on the specific programs, your home, and the products selected. Federal tax credits might provide 30% of costs (subject to caps), while utility rebates for energy typically range from $50-$500 depending on the program.

Can I apply for multiple incentives for the same purchase?

Often, yes. Many homeowners can combine federal tax credits with utility company rebates. However, some state programs may have restrictions on “double-dipping.”

Do DIY installations qualify for incentives?

Most utility rebate programs and tax incentives require professional installation with proper documentation. DIY projects typically don’t qualify for the energy efficient home improvement tax credit.

How long does it take to receive rebate payments?

Processing times vary by program. Utility rebates generally take 4-8 weeks, while tax credits are applied when filing your annual tax return.

What documentation should I keep for tax purposes?

Keep all receipts, product specifications, energy performance certifications, and installation paperwork for at least seven years in case of an audit. This documentation is essential when you file Form 5695 for residential energy credits.

Can I claim an energy efficient home improvement credit for my rental property?

Generally, the property must be your residence where you live most of the time. There are special rules if you’re a landlord or other property owner who doesn’t personally use the home.

Do Hunter Douglas or Graber products automatically qualify for tax credits?

Not automatically. While many Hunter Douglas products and Graber motorized shades are designed with energy efficiency in mind, the specific installation and application determine eligibility for tax credits.

What if I get back more on the credit than I owe in taxes?

The Energy Efficient Home Improvement Credit is partially refundable, meaning you may receive some money back even if the credit amount exceeds your tax liability.

Do windows and skylights qualify for the same incentives as window treatments?

Windows, skylights, and exterior doors often qualify for different incentives than window treatments. The energy efficient home improvement tax credit has specific categories for these items.

Maximize Your Energy Savings with WindowDecor

Energy-efficient window treatments offer a unique opportunity to enhance your home’s comfort, reduce energy costs, and potentially qualify for valuable financial incentives. As a family-owned business serving Jeffersonville and the Louisville metro area for over 30 years, WindowDecor has the expertise to help you navigate these opportunities.

Our process begins with a free, no-obligation consultation where we’ll assess your home’s specific needs and identify which energy-efficient window treatments would provide the greatest benefit—both in terms of performance and potential incentive eligibility.

Don’t miss out on the chance to improve your home’s efficiency while taking advantage of available rebates and tax credits. Contact WindowDecor today to schedule your free consultation, or call us at (502) 713-3535 to speak with one of our window treatment experts.