One of the first questions we hear from homeowners is whether impact windows are tax deductible. It is a smart question, and the answer is more nuanced than a simple yes or no. In our 15 years in this business, we have helped a lot of customers understand the financial picture, and while impact windows are not a straight tax write-off for most homeowners, there are real tax advantages that can put money back in your pocket.
The one we always point out first is Florida's sales tax exemption on impact-resistant windows and doors for residential properties. This is a real, tangible savings that our customers benefit from on every project. It eliminates the state sales tax on qualifying products, and the savings add up fast on a whole-home installation. As a licensed contractor like us in South Florida, we make sure every order is properly documented so our customers can take full advantage of this exemption without any hassle. The products just need to meet the Florida Building Code requirements for hurricane protection, which everything we install does.
What we tell every homeowner who is financing their project through a home equity loan or HELOC: talk to your tax advisor about deducting the interest. Federal tax law generally allows you to deduct interest on home equity debt when it is used for capital improvements to your home, and impact window installation absolutely qualifies. We are not tax professionals, but we have heard from plenty of our customers that this deduction made a real difference in their overall project cost. Make sure you keep all your documentation -- we provide everything you need on our end.
There is also the federal energy efficiency tax credit to look into. The impact windows we install with Low-E coatings and insulated glass may qualify, and federal legislation has expanded these credits for energy-efficient home improvements. On top of that, from our experience, the increased home value from impact windows adjusts your cost basis in the property, which can reduce your taxable capital gain down the road when you sell. We always recommend sitting down with a qualified tax professional to make sure you are capturing every available benefit -- it is worth the conversation.