2010 Tax Credits For Energy Efficient Windows and Doors

You may already be aware that energy efficient appliances and building materials can save you money on your home's energy bills, but did you know that they could earn you a tax credit as well? American tax payers who purchase and install certain energy efficient products, such as replacement windows or doors, between January 1, 2009 and December 31, 2010 may be eligible for the Residential Energy Property Credit (Section 1121).

The Energy Efficient Tax Credit was introduced as part of the American Recovery and Reinvestment Act, commonly referred to as the Stimulas Act. Homeowners can earn a tax credit for 30% of the purchase price (not including installation costs) of qualified energy efficient windows and doors. These products must be installed in an existing home, and it must be your principal residence. New construction and improvements made to rental homes are not eligible.

To qualify for the tax credit, replacement windows must have a U-Factor of 0.30 or less. The U-Factor measures how effectively the window keeps heat from escaping, and a low U-Factor indicates a more efficient window. Some windows that are considered energy efficient for other purposes may have a U-Factor that is slightly higher than 0.30, such as 0.31 or 0.32. These windows would not be eligible for the tax credit -- the U-Factor mustbe 0.30 or less. The windows must also have a Solar Heat Gain Coefficient (SHGC) of.30 or less. The SHGC measures how effectively the window blocks heat from sunlight. The lower the SHGC, the less heat comes in through the window.

U-Factor and SHGC are independently tested and verified for windows by the National Fenestration Rating Council. Look for the NFRC sticker certifying the ratings when you are shopping for windows; if the dealer will not show you the window's NFRC sticker, move on. You will need to keep these labels and your receipts for the windows with your other tax documents if you plan on claiming the tax credit. If you are unsure about a window's ratings, you can visit the NFRC website to find out more information about a specific product.

With a potential $1,500 tax credit, in addition to lower energy bills, replacing your windows and doors with energy efficient models can save money while keeping your home comfortable and looking great. If you are interested in learning more about the 2010 tax credit, contact your local Chicago window replacement company for more information.

If you are looking for a professional Chicago replacement windows contractor, please call us today at 847-826-6600 or complete our online consultation form.