Feb
03

Tax Credit Extended Through 2011

Federal tax credits for windows and door have been extended through 2011, though at a lower rate than 2010. They are also now subject to a new "Lifetime Limitation" of 500 ($200 for windows/skylights) in aggregate credits that a homeowner can claim from January 1, 2006 to December 31, 2011. So if you have already claimed more than $200 in window tax credits since 2006, you should not apply for the credit under this extension. Check with your tax advisor.

The requirements have also changed to line up with ENERGY STAR criteria (rather than the previous < .30 u-factor and SHGC requirements).

For windows and doors placed into service between January 1 and December 31, 2011, you may be eligible to receive tax credits as follows:

  • For windows, get 10% back up to $200
  • For exterior doors, get 10% back up to $500

Products That Qualify

To qualify for the stimulus tax credit, the windows and exterior doors must:

  • Meet the ENERGY STAR criteria in your region. Click to see ENERGY STAR zones and requirements in your area.
  • Be used to improve an existing home. This tax credit does not apply to new homes.
  • Be "placed in service" between January 1, 2011 and December 31, 2011. Placed in service is defined as when the property is ready and available for use.
  • Be installed in the taxpayer's primary residence.

 

How to Receive Your Tax Credit

Step 1: Purchase qualifying windows and/or exterior doors. Look for the NFRC label on your product and make sure the U-Factor and SHGC ratings comply with the ENERGY STAR requirements for your region.

Step 2: Keep the receipts that show the cost of the qualifying products – excluding installation charges – and save the NFRC label from each window or door. Keep these with your tax materials in case of an audit.

Step 3: Download your Manufacturer's Certificate Statement and keep it with your tax records.

Step 4: Submit the claim with your taxes for the year the windows and/or doors were installed.

Step 5: Consult your tax advisor. The extension of the tax credit for energy efficient windows and doors has a few new rules that may restrict eligibility depending on previous tax credits claimed for windows and doors.

For more information, consult the ENERGY STAR website.

We hope this guide has been helpful. If you have any further questions, don’t hesitate to contact us. We’ll be happy to answer any questions you may have about the stimulus tax credit, as well as windows, doors and garage doors.