Energy Tax Credit

Energy Bill Tax Credits

There is no better time than the present to replace your current windows with new ultra energy-efficient windows and patio doors!

On February 17, 2009, President Obama signed an economic stimulus package which included the American Recovery and Reinvestment Act of 2009. The Act provides an increase in the amount of energy tax credits (as well as extending the credits through the year 2010) to homeowners who opt to make energy efficient improvements to their homes. Replacing existing windows and doors with improved energy-efficient products can make you eligible for this energy tax credit.

$1,500 Energy Tax Credit

The Act allows homeowners to receive a tax credit based on 30% of the total cost of the qualifying energy-efficient windows and doors with a maximum tax credit of $1,500 per household for the years 2009-2010. Note that not all product being replaced needs to meet the 0.30 u-factor/SHGC requirements. Since the maximum tax credit is limited to $1,500 per household, only $5,000 of the actual new product installed is required to meet the u-factor/SHGC values noted in the Act and still provide the homeowner with the maximum $1,500 tax credit. The credit applies to existing homes only. The maximum total amount that can be claimed is $1,500 combined for all qualifying energy-efficient upgrades detailed in the Act, which includes items such as insulation and HVAC systems, placed in service in 2009 and 2010.

Please note that not all ENERGY STAR® rated products qualify for a tax credit. These tax credits are available for a number of products at the highest energy efficiency levels. If for some reason you decide not to purchase a product that qualifies for this tax credit, you should consider purchasing an ENERGY STAR rated product that will still pay you back in terms of lower energy bills.

How to Qualify For The Energy Tax Credit

You must replace existing windows and doors with products that meet an overall u-factor of 0.30 or less and an overall SHGC value of 0.30 or less. Qualifying product must be purchased and installed between January 1, 2009 and December 31, 2010.
Note that only the cost of the actual windows and doors is applied toward the tax credit. IE: Costs such as installation, finishing, sales tax, etc. cannot be applied.
The tax credit applies to the homeowner's principal residence only and is an actual deduct from your tax liability; which means you can have the tax credit added to your tax refund or deducted from the amount of tax you owe.
Be sure to keep the original copy of your sales receipt indicating the price you paid for the product as well as the original NFRC performance labels confirming the product you purchased meets the 0.30 u-factor/SHGC values. This information is required to submit with your tax documents. (See attached sample of NFRC performance label for reference). Contact a professional tax consultant to confirm eligibility.
Claim your energy tax credit on your Federal filing for the year 2009 or 2010.
We urge you to contact your local utility companies to explore other potential rebates or special offers they might provide.

This information is provided only as a summary of the Act as it relates to energy-efficient window replacement. Please consult a tax professional for advice on your individual tax credit qualifications. To learn more about the American Recovery and Reinvestment Act of 2009 and qualifying tax credits, visit Energy Star®'s website at www.energystar.gov or use the link below.