Stimulus Tax Credit Up to $500
The “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act”
(H.R. 4853) signed into law on December 17, 2010, extended the federal credit for certain residential energy products for one year at reduced levels from the 2009-2010 credit. Below is a summary of the new credit. Qualifying windows and doors
Summary
UltarWeld Windows
- Double Hung with SB60 surface 2 meets code with no price increase (EnergySmart Supreme²).
- Gliders with SB60 surface 2 meets code with no price increase (EnergySmart Supreme²).
- Casement Windows with SB60 surface 2 meet code with no price increase (EnergySmart Supreme²).
- Picture window meets code with SB60 surface 2 with grids with no price increase (EnergySmart Supreme²).
- Casement Picture Window meets code with SB60 surface 2 with no price increase (EnergySmart Supreme²).
- Vinyl Patio Door doors meet code with SB70 glass, this will be an increase in price of $190.00 list.
ThermalWeld Windows
- Double Hung with SB60 surface 2 meets code with no price increase (EnergySmart Supreme²).
- Gliders with SB60 surface 2 meets code with no price increase (EnergySmart Supreme²).
- Picture window meets code with SB60 surface 2 with grids with no price increase (EnergySmart Supreme²).
- Vinyl Patio Doors will meet the new codes with SB70 glass on surface two (EnergySmart XL), but there will be an up-charge of $190.00 list per door for the SB70 glass. Units with SB60 on surface 2 with grids will meet the new code with no price increase.
What windows and doors are eligible for the credit?
Windows, skylights and exterior doors that meet the ENERGY STAR rating.
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.
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 materials for
installation).
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 by
December 31, 2011.
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.
Where can I get more information on the tax credits?
Visit http://www.energystar.gov/index.cfm?c=home.index. The IRS will issue additional specific
guidance soon. Check http://www.irs.gov for updated information.
This information represents the best information available as of December 20, 2010. 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.
Click HERE for a downloadable pdf of this information
Understanding the Window Label
This is a sample of the NFRC label that must be saved off of each window and door to get the Federal Tax Credit.
- The label will have the type of window, and the glass configuration.
- The U-Value must be 0.30 or lower to qualify for the Federal Tax credit. If this number is above 0.30, you will not get a tax Credit for that window or door.
- The Solar Heat Gain Coefficient (SHGC) must also be 0.30 or lower to Qualify for the Federal Tax Credit. If this number is above 0.30, you will not get a tax Credit for that window or door.