AndersenOn February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. This bill extends and modifies the tax credits for windows, doors, and skylights established in the Energy Policy Act of 2005. The following guidance is not intended as legal advice, and you should consult a tax professional with specific questions. A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces your tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Therefore, $1,500 can be subtracted directly from the amount of tax that is owed, or added to a tax refund. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.
Homeowners - Federal Tax Credits for Energy Efficiency - For Existing Homes Only: Tax credits are available at 30% of the product cost, up to $1500 in 2009 & 2010 for Windows and Doors. We are only focusing here on the eligible products we sell - windows and doors. Other product categories are also eligible. Energy Efficiency criteria will vary dependant for each product category, so refer to the Summary of Tax Credits for Homeowners at the Energy Star website.
Products Purchased on or after June 1, 2009 Criteria: Windows, doors, and skylights purchased on or after June 1, 2009 must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less. These ratings must be certified by the National Fenestration Rating Council (NFRC). Look for the NFRC label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights. Please see the NFRC website for information concerning product performance. Documentation: Homeowners must obtain a manufacturer certification statement (see PDF documents from Manufacturers in the top left column of this page) to document window, door, or skylight eligibility for the tax credit. If the retailer or installer cannot provide this document, it may be available on the manufacturer's website.
Homeowner Summary
- The product(s) must be "placed in service" by December 31, 2010
- The product(s) must be for taxpayer's principal residence. $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements.
- Labor and installation costs are not applicable.
- The product(s) must have a Manufacturer Certification Statement to qualify. This a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.
- Home improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010.
More information on tax credits for Homeowners (including forms) can be found at the Department of Energy Website »
*Disclaimer: This page on tax credit information is presented free of charge to provide general information on the new federal tax credit and is not intended to be an interpretation of eligibility for the tax credit. Please consult with a qualified tax advisor to discuss eligibility. Most of the information was gathered and summarized from the Energy Star website and other government websites. National Millwork offers this information as a service. Many of our products are eligible for the Energy Savings Federal Tax Credit of 30% up to $1500, but National Millwork is not a tax advisor and does not guarantee the government tax credit. See a National Millwork representative for more details.