Stimulus Increases Window & Door Tax Credits
In February, the government approved a $789 billion stimulus bill which greatly increases the value of tax credits for energy efficient home improvements. This bill specifically promotes the use of energy efficient windows and doors by extending tax credits through 2010 for new purchases of qualified products.
 
The new bill allows homeowners a credit of 30 percent of the cost of qualified energy efficient upgrades to a maximum of $1,500 per household for 2009 and 2010. To receive this credit, homeowners must use products that meet strict energy efficient requirements.
 
    The following qualifications must be met to receive this credit:

  • Product must be installed between January 1, 2009 and December 31, 2010
  • Products must be installed in taxpayer's principle residence (Applies to non-business properties only).
  • Windows, doors, and skylights must have a U-factor of less than or equal to 0.30 and a Solar Heat Gain Coefficient of less than or equal to 0.30.
  • If you are building a new home, the tax credit applies to geothermal heat pumps, photovoltaics, solar water heaters, small wind systems and fuel cells, but NOT to windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
 
All claims must be submitted with your taxes for the year that the products were installed. You must submit a copy of the Manufacturer's Certification Statement to qualify. For proper documentation, save all receipts and a copy of your Manufacturer Certification Statement. All claims will be submitted using the IRS Tax Form 5695 which will be available late 2009 or early 2010.
 
Tax credits for windows, doors, insulation, HVAC, and non-solar water heaters that were avialable in 2006 & 2007 are NOT available for products installed in 2008, but they are again eligible for products installed in 2009 and 2010.
 
This page is intended for informational purposes only and is not intended as legal advice. For further explanation or guidance with specific questions, taxpayers should always consult a tax professional.