If you are trying to determine whether window replacement should be your next home improvement project, consider the benefits of energy-efficient windows. First, by choosing energy-efficient windows, you can sometimes save drastically on your heating and air conditioning bills. Second, window replacement typically nets a good return on investment. And third, the government is willing to help you pay for it.

Resale Return on Window Replacement

When you replace your old windows with new energy-efficient windows, you not only improve the appearance and efficiency of your home, but you can get a decent return on your investment at resale. Although replacing all the windows in your home with energy-efficient vinyl windows costs, on average in the U.S., between $10,000 and $15,000, your return on that investment is statistically likely to be over 77 percent. If you live on the west coast, the news is even better--you can expect to recoup more than 93 percent on your investment when you sell your home.

Government Tax Incentives for Window Replacement

In addition to your return on resale and your savings on heating and air conditioning costs, installing energy-efficient replacement windows has an immediate tax benefit. For 2009 and 2010, the federal government is giving homeowners a 30 percent tax credit (up to $1,500) on the material costs of window replacement, provided your new windows meet the Energy Star standard of less than a 0.30 rating for U-factor and Solar Heat Gain Coefficient (SHGC). Some states and municipalities also have tax incentive programs, as well as Property Assessed Clean Energy (PACE) loans that you can pay back through your property tax over time.

So replace those old windows with new energy-efficient vinyl windows and see your energy bills drop and your tax return increase!