New Stimulus bill changes tax credits for energy efficient home improvements

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

The highlights for replacement windows are as follows:

·        The tax credit has been raised from 10% to 30%

·        The tax credits that were for a specific dollar amount have been converted to 30% of the cost

·        The maximum credit has been raised from $500 to $1500 for the two years (2009–2010)

·        The $200 cap on windows has been removed 

Not all energy star windows will qualify for rebate!!

Requirements - New Replacement Windows MUST have a 0.30 U-Factor or less AND a 0.30 SHGC to qualify.

Example: Spend $6,000 receive $1,500 tax credit.
Windows can be installed from January 1, 2009 to December 31, 2010 to get the tax credit from the 2009 Stimulus Bill.

·        No tax credit will be given if the replacement windows and doors don't meet new requirements not just Energy Star

·        This 2009 Stimulus Tax Credit is for the entire United States 

Tax Credits for Consumers:

·        Must be "placed in service" from January 1, 2009 through December 31, 2010

·        Must be for taxpayers principal residence

·        Maximum amount is $1,500 in 2009 & 2010 for most home improvements (geothermal heat pumps, solar water heaters, solar panels, fuel cells, and windmills are not subject to this cap)

·        For record keeping, save your receipts and the Manufacturer Certification Statement, OR for windows, you can save the ENERGY STAR label from your new windows

·        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

Customer’s can view www.energystar.gov  to find out more information.

* Limits apply - not all windows qualify.