Energy Tax Credit Now Available
The tax credit made available to homeowners as part of Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law December 17, 2010 extends certain energy efficient tax credits for qualifying windows, skylights and exterior doors for a period of one year.
How to Qualify:
- Replace old windows and doors with qualifying NT Window products with both a U-Factor and SHGC of 0.30 or lower between January 1, 2011 and December 31, 2011. Search for products with the Stimulus Approved symbol as they meet all requirements necessary to claim the available tax credit when ordered with the appropriate glass combination. Ask your NT Window dealer for more details.
- Save the purchase receipt and all NFRC labels from the windows and doors installed.
- Print and file the Manufacturer’s Certification Statement pertaining to the American Recovery and Reinvestment Act of 2009.
- Claim the tax credit associated with your qualifying purchase on your Federal tax filing for the 2011 tax year.
Tax Credit Q & A:
1. What windows and doors are eligible for the credit?
Windows, skylights and exterior doors that meet the ENERGY STAR rating.
2. How much is the tax credit?
The tax credit is $200 for windows and skylights and $500 for exterior doors. The
maximum credit for all taxable years for qualifying products is $500 — no more than
$200 of the credit can be attributable to expenses for windows and skylights.
3. What percentage of the product(s) purchase price is eligible?
Ten percent of the purchase price up to the cap listed in #2 (not including labor or
4. When does the tax credit take effect and how long does it last?
The tax credit begins January 1, 2011 and expires December 31, 2011. Purchasers of qualifying windows,
skylights and exterior doors must have them installed in their principal residence.
5. How does the tax credit compare to the previous credits? Are consumers who took advantage of
those credits eligible for the new tax credit?
The 2011 tax incentives revert to the 2005-2008 levels: 10% of the cost installing
efficient windows. Anyone who has taken advantage of the 2006 - 2010 programs cannot
apply for incentives that exceed the cap. Example: if a consumer claimed $500 in 2006
for a qualifying exterior door, the tax credit is exhausted; if only $300 was claimed in
2009, $200 can still be claimed - for a total of $500.
The IRS will issue additional specific guidance soon. Check http://www.irs.gov
for updated information. It summarizes the changes to the IRS Federal Tax Code (US Code Title 26, Section 25C) amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.Contact an accountant or other tax professional for advice related to the specific tax credits. This information represents the best information available as of December 20, 2010.
6. Where can I get more information on the tax credits?