Energy Tax Credit For Windows

2011 Energy Tax Credit Quick Facts

On February 17th, President Obama signed the $789 billion economic stimulus bill that includes tax credit incentives for homeowners who make energy-efficient home improvements. The bill extends eligibility for tax credits through 2011 on energy-efficient improvements—including qualifying windows and doors!

The bill includes the ability for homeowners to receive a tax credit of 30 percent of the cost of qualifying energy-efficient products up to a maximum of $500 per household for all improvements made in 2011.

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, onsite preparation, assembly or sales tax.
4. The tax credit is allowable only for qualified window units placed in service in 2011.
5. Homeowners must save their receipts for their windows purchased along with all window labels and stickers for verification and tax recordkeeping.
6. The windows must be installed in the taxpayer's principal residence.
7. This tax credit is capped at a total of $500 for 2011.
8. Unlike a tax deduction, which only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe.

ENERGY STAR® is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy-efficient products and practices. Check out energystar.gov/taxcredit for more information on the available federal tax credit when you purchase energy-efficient windows and doors.

HIGHLIGHTS OF THE AMERICAN RECOVERY & REINVESTMENT ACT

The American Recovery & Reinvestment Act:

1. Provides a consumer tax credit up to $500 for 30% of the cost of qualified remodeling projects that improve the energy efficiency of an existing home—including replacement windows.
2. Applies to any ENERGY STAR qualified windows and doors purchased from January 1, 2009 to Dec 31, 2011.
3. Applies to windows and doors with a U-value of at least 0.30 and solar heat gain coefficient of at least 0.30 purchased from June 1, 2009 to December 31, 2011.

ENERGY STAR's Tax Credit Page: www.energystar.gov/index.cfm?c=products.pr_tax_credits