Federal Tax Credit
2011 Tax Credit For Energy Efficient Windows, Doors & Skylights
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which became law on Dec. 17, 2010 has extended the tax credit for installing energy efficient windows and doors through 2011. However, the tax credit has been changed and greatly reduced. Below are some of the details of the new tax credit are below.
- The maximum credit for energy efficiency has been reduced to $500.
- The maximum credit is a lifetime limit, so if a homeowner has claimed the credit in past years, the lifetime cap is $500.
- The maximum credit for energy efficient windows has been limited to $200.
- The deduction has also been reduced to 10% of the purchase price of the product only.
Below are the energy efficiency standards that apply to windows, doors and skylights to qualify for the tax credit.
(2) Exterior Window, Skylight, or Door. An exterior window, skylight, or door (other than a storm window or storm door) that—
(a) Has a U factor and Solar Heat Gain Coefficient (SHGC) of 0.30 or below; and
(b) Meets the prescriptive criteria for such component established by the IECC.
(3) Storm Window. A storm window that, in combination with the exterior window over which it is installed—
(a) Has a U factor and SHGC of 0.30 or below; and
(b) Meets the prescriptive criteria for such component established by the IECC.
(4) Storm Door. A storm door that, in combination with the exterior door over which it is installed—
(a) Has a U factor and SHGC of 0.30 or below; and
(b) Meets the prescriptive criteria for such component established by the IECC.
For more info on how to qualify for the federal tax credit in 2011, contact us at 206-402-4229 or fill out the form above for a free estimate.
Federal Energy Efficiency Tax Credit for 2010
The American Recovery and Reinvestment Act of 2009 extends tax incentives for replacing windows, doors and skylights in a homeowner’s primary residence. Generally, a tax credit is more valuable than an equivalent tax deduction because a tax credit reduces tax dollar for dollar, whereas a deduction only removes a percentage of the tax that is owed. Consumers can itemize their purchases on their federal income tax form, which will lower the total amount of tax that they owe the government.
Consumers who purchase and install energy efficient windows, doors or skylights in their primary residence can receive a tax credit for 30% of the product cost, up to $1500 for improvements “placed in service” starting January 1, 2009 through December 31, 2010 provided that they meet the following energy efficiency standards.
Windows must meet the following specifications to be eligible for the energy tax credit:
- U-factor of <=0.30 and SHGC <=0.30
Earn a $1500 tax credit on replacement windows and doors
Call us at 206-402-4229 for a free estimate on windows and doors for your home, or fill out the online form above.
Or stop by our showroom at 2626 15th Ave W, Seattle, WA 98119.
