Federal Tax Credits for Energy Efficiency

All-Weather Windows, Doors & Siding products will help increase your home's comfort and energy efficiency. Better yet, if you buy them now, you may qualify for a credit of 30% of the product cost and up to $1,500 on your federal income tax.

On February 17th, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some signifacant changes to the energy efficiency tax credits. The highlights are:

• The tax credits that were previously effective for 2009, have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%.
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1,500 for the two years (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed.

The American Recovery and Reinvestment Act of 2009 (“the Act”) provides federal tax credits for eligible building envelope components that improve energy efficiency. To meet the eligibility performance criteria under the Act, windows, doors and skylights must have both a U-Factor equal to or less than 0.30 and a Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.

Claiming your Federal Tax Credit:

• Federal tax credit claims should be submitted with your taxes from the year that the windows and doors were installed.
  
  
• The IRS form for requesting the home improvements tax credit is IRS Form 5695 (2009 version), which will be available in late 2009 or early 2010.
  
  
• Homeowners should retain the manufacturer’s NFRC certification label and sales receipt for their records, but are not required to submit them with their tax return. U-Factor and Solar Heat Gain Coefficient (SHGC) ratings can be found on the National Fenestration Rating Council (NFRC) label that is affixed to every window or patio door.

>>For further detailed information on the Federal Tax Credits.