Federal Tax Credits

Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only)

Tax Credits for Consumers:

Home Improvements

Tax credits are now available for home improvements:

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

must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify)

$1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016

must have a Manufacturer Certification Statement to qualify for record keeping, save your receipts and the Manufacturer Certification Statement

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

On February 17, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. This bill extends and modifies the tax credits for windows, doors, and skylights established in the Energy Policy Act of 2005.

The following guidance is not intended as legal advice, and you should consult a tax professional with specific questions:

To qualify for the tax credit, windows, doors, and skylights placed in service after February 17, 2009 must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. You can find the U-factor and SHGC on the National Fenestration Rating Council (NFRC) label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights

Want more from your windows? Ask for ENERGY STAR.

ENERGY STAR-qualified windows, doors, and skylights save you energy and money, increase the comfort of your home, and protect your valuable possessions from sun damage. They are also better for the environment because lowering your energy use means less air pollution from power plants.

#1 Save money and energy. Installing ENERGY STAR-qualified windows lowers energy bills and saves you money over single-paned and even new double-paned, clear-glass windows.

#2 More than just dollar savings. ENERGY STAR-qualified windows protect from the winter cold and summer sun, while also reducing condensation and interior fading.

#3 What makes a window, door, or skylight energy-efficient? Thanks to a host of new technologies, ENERGY STAR-qualified windows, doors, and skylights keep your home cooler in the summer and warmer in the winter, making you more comfortable.

#4 Purchasing tips to help you buy with confidence. Every ENERGY STAR-qualified window, door, and skylight is independently certified to perform at levels that meet or exceed strict energy efficiency guidelines set by the U.S. Department of Energy.

#5 Energy-saving tips. Proper installation, orientation, tree planting, and home sealing can help you save even more energy and money!

#6 Find Rebates. Search for local rebates in your area and learn about the 2009 federal tax credit.

#1 Save Money and Energy — Choose ENERGY STAR Qualified Windows, Doors, and Skylights

Installing ENERGY STAR qualified windows lowers energy bills and saves you money over single-pane and even new double-paned, clear-glass windows.

For a typical home, choose ENERGY STAR and save:

$126–$465 a year when replacing single-pane windows

$27–$111 a year over double-pane, clear glass replacement windows

#2 More Than Just Dollar Savings

New ENERGY STAR qualified windows can help reduce your energy bill up to 15 percent. Estimated savings vary from region to region depending on current heating and cooling costs and are generally greatest where there are hot summers, cold winters or both.

In addition, ENERGY STAR qualified windows, doors, and skylights do more than just lower energy bills-they deliver more comfort, create less condensation, and protect your valuables from sun damage better than conventional clear-glass double-paned alternatives.

BENEFITS WHEN IT’S COLD

PROTECTION FROM WINTER CHILLS

On cold winter nights, do you avoid seats near the window? The cold, inside surface of an inefficient window pulls heat away from your body, so you can feel chilly in a sweater with the thermostat at 70 degrees. With ENERGY STAR qualified windows, the interior glass stays warmer, so you can enjoy your window seat even when the temperature outside dips well below freezing.

REDUCED CONDENSATION

On winter mornings, is there fog on the inside or the outside of your windows? If an inefficient window or window frame gets too cold, indoor moisture can condense or even freeze on the interior surface and then pool on the sill. Over time, chronic condensation can damage sills, cause paint to crack, and encourage the growth of mold. Advanced technologies enable ENERGY STAR qualified windows to keep the interior of the glass and frame warmer, reducing the potential for condensation and ensuring a clearer view on winter mornings.

BENEFITS WHEN IT’S WARM

SHIELDING FROM SUMMER HEAT

In summer, do some of your rooms feel like a sauna? A typical double-paned, clear-glass window allows approximately 75 percent of the sun’s heat into your home. Most ENERGY STAR qualified windows transfer much less heat, typically without reducing visible light. You get the light you need without the uncomfortable heat.

SAFEGUARDING VALUABLE INTERIORS

Your favorite photograph, your child’s artwork and even your couch can fade or discolor after repeated exposure to direct sunlight. Most Low-E coatings, the same coatings that keep out the summer heat, can reduce fading by up to 75 percent. These coatings act like sunscreen for your house, blocking damaging ultraviolet rays without noticeably reducing visible light.

#3 Anatomy of an Energy Efficient Window

#4 Purchasing Tips

Shopping for new windows, doors, and skylights can be a confusing process. ENERGY STAR makes it simple! Follow these five steps to ensure your windows, doors, and skylights are the most energy efficient and deliver savings and comfort you'll enjoy.

Determine your ENERGY STAR Climate Zone
Look for the ENERGY STAR label

When shopping for windows, doors and skylights, look for the ENERGY STAR label to determine if the product is qualified in your area.
Ask for ENERGY STAR when ordering

All ENERGY STAR window, door, and skylight manufacturer partners offer products that meet the ENERGY STAR criteria. The key is to ask for them. Find an ENERGY STAR Window, Door, or Skylight Manufacturer.

Windows, doors, and skylights should display an official ENERGY STAR label (examples below) or equivalent custom label, next to the NFRC label. There are a variety of custom labels, but all should include the same elements as the official label:
- The ENERGY STAR Certification Mark
- A map showing where the product is qualified
- A qualification statement
Have Windows, Doors, and Skylights Properly Installed

To get the most out of your windows, doors, and skylights, have them installed by trained professionals according to manufacturer instructions. Otherwise, your warranty may be void.

Examples

Official label for products qualified in all four Climate Zones (Northern, North/Central, South/Central, and Southern)

#5 Energy Saving Tips

PROPER INSTALLATION

To get the most out of your windows, doors, and skylights, have them installed by trained professionals according to manufacturer instructions. Otherwise, your warranty may be void. When hiring a contractor, interview candidates and ask for references. If installation requires scraping lead-based paint, be sure to take proper precautions.

WINDOW ORIENTATION

When building a new home, or planning a major addition, consider this: orienting windows to the south and using roof overhangs can help reduce energy use by providing shade from the sun in the summer and solar heat gain in the winter. Overhangs are much less effective against the lower angles of the east and west sun, therefore reducing the size and number or east and west facing windows can help reduce energy use.

PLANT A TREE

Strategically planting deciduous tress near south, east, and west-facing windows will provide needed shade in the summer, but let in the sun's heat during the winter.

HOME SEALING

If you add up all of the hidden air leaks in your home, they can equal a hole the size of an open window! To maximize home efficiency, seal all the gaps where air can leak in or out, including those around windows, doors, wiring holes, recessed lights, plumbing vents, your attic hatch, and more. Stopping drafts can make you feel more comfortable and reduce energy bills.

#6 Local Rebates

Many local utilities provide financial incentives for purchasing ENERGY STAR qualified windows, doors, and skylights. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.