2011 ENERGY STAR FEDERAL STIMULUS:
On December 17, 2010, President Barack Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Under this law, homeowners may claim a tax credit for the purchase of energy-efficient windows, doors, and skylights.
To be eligible for the credit, windows, doors, and skylight must:
- Meet ENERGY STAR program requirements
- Be installed in a taxpayer’s primary residence
- Be installed by December 31, 2011
Homeowners may receive a tax credit equal to 10% of the product cost (installation may NOT be included) up to:
- $200 for eligible windows and skylights
- $500 for eligible doors
Homeowners may receive no more than $500 total for all Energy Star energy efficiency tax credits. These caps are also the new “lifetime limits” for the taxable years of 2006 to 2011. If you claimed an energy efficiency credit in a previous taxable year, please consult a tax professional to determine your remaining eligibility for this credit.
The Internal Revenue Service (IRS) has not yet made a determination as to what documentation a homeowner must retain when claiming this tax credit. Until IRS issues a guidance document for this tax credit, homeowners should save all available documentation, such as purchase receipts, ENERGY STAR labels, and manufacturers’ certification statements. Additional information will be provided if and when it is made available from the IRS.
How to qualify for the Tax Credit?
- Purchase qualifying windows or doors from Win-Dor and save your paid invoice with all NFRC energy labels.
- Schedule Win-Dor to install your qualifying products before December 31, 2011.
- Claim your tax credit on your federal filing for the year 2001 and/or 2011.
Tax credit versus tax deduction?
- A tax credit lowers your tax bill dollar for dollar. A deduction shaves money off your taxable income, so the value depends on your tax bracket. If you’re in the 25% bracket, a $1,000 deduction lowers your tax bill by $250. But a $1,000 credit lowers the bill by the full $1,000, no matter which bracket you are. Dollar-for-dollar tax reductions are better than a percentage decrease.
What are “qualifying” products?
- A qualifying window or door is one that has a NFRC label demonstrating a U-Factor and Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.
