Federal tax credits for windows and door have been extended through 2011, though at a lower rate than 2010. They are also now subject to a new "Lifetime Limitation" of $500 ($200 for windows/skylights) in aggregate credits that a homeowner can claim from January 1, 2006 to December 31, 2011. So if you have already claimed more than $200 in window tax credits since 2006, you should not apply for the credit under this extension. Check with your tax advisor.
The requirements have also changed to line up with ENERGY STAR® criteria (rather than the previous < .30 u-factor and SHGC requirements).
For windows and doors placed into service between January 1 and December 31, 2011, you may be eligible to receive tax credits as follows:
- For windows, get 10% back up to $200
- For exterior doors, get 10% back up to $500
As homeowners and remodelers search for more ways to increase home energy efficiency, Wheaton Door and Window, offers a wide selection of options designed for nearly any project or budget.
Glossary of Terms
U-Factor: The amount of heat flowing through a product. The lower the number, the more energy efficient the product is.
Solar Heat Gain Coefficient (SHGC): The ability to block heat generated by sunlight. The greater the blockage, the lower the SHGC.
National Fenestration Rating Council (NFRC): This organization conducts tests for energy efficiency based on the entire product, not just the glass.
ENERGY STAR: A government-backed program helping businesses and individuals protect the environment through superior energy efficiency.
Products That Qualify
To qualify for the stimulus tax credit, the windows and exterior doors must:
- Meet the ENERGY STAR criteria in your region. Click to see ENERGY STAR zones and requirements in your area.
- Be used to improve an existing home. This tax credit does not apply to new homes.
- Be "placed in service" between January 1, 2011 and December 31, 2011. Placed in service is defined as when the property is ready and available for use.
- Be installed in the taxpayer's primary residence.
How to Receive Your Tax Credit
Step 1: Purchase qualifying windows and/or exterior doors. Look for the NFRC label on your product and make sure the U-Factor and SHGC ratings comply with the ENERGY STAR requirements for your region.
Step 2: Keep the receipts that show the cost of the qualifying products – excluding installation charges – and save the NFRC label from each window or door. Keep these with your tax materials in case of an audit.
Step 3: Download your Manufacturer's Certificate Statement and keep it with your tax records.
Step 4: Submit the claim with your taxes for the year the windows and/or doors were installed.
Step 5: Consult your tax advisor. The extension of the tax credit for energy efficient windows and doors has a few new rules that may restrict eligibility depending on previous tax credits claimed for windows and doors.
For more information, consult the ENERGY STAR website.
THE TAX STIMULUS PLAN FOR 2010:
The tax credit was originally a barebones $200 for windows and up to $500 for doors. Now Congress and the President have passed the American Recovery and Reinvestment Act, aka “The Stimulus.” Inside is a provision that triples the tax credit for 2006 and 2007.
This isn’t a handout. You have to be a smart shopper. Only the most energy-efficient windows and doors qualify for the tax credit. The old requirement, Energy Star certification, doesn’t cut it anymore. The new standard will help put our country on the road to energy independence. Plus, better windows save you money on energy bills and keep you comfortable all year round.
Only doors and windows with a U-Factor of .30 meet the new requirements for the energy tax credit. U-Factor is a measure of the window’s overall energy-efficiency. Many windows have U-Factors of .31 or .32. Those don’t qualify.
Windows and doors also need a Solar Heat Gain Coefficient (SHGC) of .30 or less. A low SHGC blocks the heat of the sun, reducing the load on your air conditioning. Once again, .31 or .32 aren’t good enough. It has to be exactly .30 or less.
U-Factor and SHGC are independently verified and tested for windows, entry doors, and patio doors by the National Fenestration Rating Council. Any reputable window will have a NFRC sticker.
To get your $1,500 tax credit, you need to shop smart. Not every brand qualifies for the tax credit—even expensive brands you’ve probably heard of. A lot of companies haven’t processed or don’t even know about the new tax credit. There’s a lot of confusion about this right now—you don’t want to be left empty-handed.
Here’s what you need to do: Make sure that any replacement window or door you buy has a U-Factor and SHGC of .30 or less. If the window company won’t show you the NFRC sticker certifying the ratings, walk away. If you’re unsure or suspicious, visit the NFRC at www.nfrc.org. You can verify ratings in the product directory or contact them directly.
1. Purchase and install any replacement window, patio door, or entry door with a U-Factor and SHGC of .30 or below before December 31, 2010.
• The tax credit is for the cost of the product only and does not include installation costs. Be sure to ask for a sales receipt that shows the cost of the product only.
• The tax credit is 30% of the amount paid up to a $1,500 maximum.
• If a combination of windows and doors are purchased, the total maximum credit is $1,500.
• This is a new tax credit for 2010
Be confident that you’re getting replacement windows and doors that qualify you for up to a $1,500 tax credit. Wheaton Door and Window Company has NFRC-certified windows, entry doors, and patio doors in all styles that meet federal requirements. Plus, they’re professionally installed and backed by a Lifetime Performance Guarantee.
