Energy Tax Credit

Energy Tax Credit:  The American Recovery and Reinvestment Act of 2009 provides several energy conservation incentives for homeowners. When taxpayers purchase replacement windows and doors in 2009 and 2010, that meet the energy efficiency requirements set forth by the legislation, they are eligible to receive a tax credit of up to 30% of the purchase amount on qualifying windows and doors. 

The requirements to qualify for the new energy tax credit include:

    1. Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30.
    2. The purchase of the qualified windows must be made during the taxable year for which the credit is being claimed.
    3. The credit is only allowed on the price of the qualified windows themselves, not on installation costs, on site preparation, assembly or sales tax.
    4. The tax credit is allowable only for qualified window units placed in service in 2009 and 2010.
    5. Homeowners must save their receipts for their windows purchased along with all window labels and stickers for verification and tax record keeping.
    6. The windows must be installed in the taxpayer's principal residence.
    7. This tax credit is capped at a total of $1,500 for the years of 2009 and 2010.
    8. Unlike a tax deduction, which only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe.

      How to Claim the Credits
      Homeowners seeking to claim the available tax credits should complete IRS Form 5695 for the tax year in which the improvement is placed into service. For record keeping purposes, it is advisable for homeowners to retain the work orders or receipts for the qualifying improvement. This paper work does not have to be submitted with the tax return, but should be kept on file with the homeowner.

      If you are looking for tax credit for energy efficient windows then please call us today at 770-391-0711 or complete our on line request form.

      It is recommended that consumers consult their tax advisers and review IRS guidance prior to purchasing any window or door product. For further details on the energy tax credit, visit the IRS website.