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Replacing your windows can be a great investment if your home is more than 10 years old. New windows will not only add life to your home, they will add value as well. Windows have evolved greatly in the past decade. Wood-cased windows have become unpopular due to maintenance issues, although they are still available. Today, most homeowners choose vinyl-cased or combination vinyl and wood-cased windows. Single and double paned windows are available as well as the more expensive roll-out style option. Low-E, energy efficient windows block UV rays, and argon gas can add another layer of protection between your home and the outside elements. The more energy efficient your windows, the more they can save on your heating and cooling costs.

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"Window Installation and Replacement" A home can lose thirty percent of its heating or cooling through drafty windows. Now is the time to get them replaced with energy-efficient windows from your local window contractor. And, you may be able to claim a tax credit when you file your income taxes. Find out more about energy-efficient window replacement.

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Tax Credit for Windows

By Jinky Bagagnan

Any green improvements that are in place by December 31, 2010 will entitle the homeowner to a tax credit of up to 30 percent of the purchase cost. You don't need to do extensive renovations to get this tax rebate. Just replace your windows with green-standard-compliant ones to get a tax rebate of up to $1,500. The following are some things to keep in mind so you can get a green home renovation tax credit for replacing your windows.

Brush up on Performance Ratings
Energy Star qualified windows have labels that indicate their U-Factor and Solar Heat Gain Coefficient (SHGC) ratings. U-Factor refers to a window's ability to insulate; the lower the U-Factor is, the better its insulation ability. The Solar Heat Gain Coefficient, on the other hand, refers to the window's solar heat transfer capacity; the lower the SHGC is, the less solar heat it transfers (or the better that window is at blocking solar heat).

Take Note of Required Performance Ratings
Not all Energy Star qualified windows are qualified for the green home improvement tax credit. The performance ratings required for tax-credit qualification is steeper than the performance ratings required for Energy Star qualification. Specifically, windows must have 0.30 or less U-Factor and SHGC rating to be eligible for the tax rebate.

Shop for Qualified Windows
Keep the required ratings in mind when you shop for window replacements. Check the Energy Star label to see if the U-Factor and the SHGC ratings comply with the minimum performance ratings. You can also simply look for windows that bear the elliptical, white-on-blue label that says a product is "Eligible for up to $1,500 Federal Tax Credit."

Keep the Manufacturer's Certification and Receipts
When you buy your windows, do not forget to keep your purchase receipts and the Manufacturer's Certification Statement. The Manufacturer's Certification Statement is the manufacturer's certification that a product is qualified for the federal tax credit. This certification does not need to be filed with your tax return, but you do need to keep a copy if it for your records.

Have Windows Installed by Professionals
Installation costs are not covered by the federal tax credit for green home improvements. Nevertheless, you should seriously consider having a professional remodeling contractor install your new windows for you. This way, you can ensure that your windows will be installed properly, and you can maximize the savings that you can get from your new windows. The federal tax credit is truly only icing on the cake; the real savings from your greener windows will come from your electricity cost savings.

Remember, your green home improvements must be in place before December 31, 2010 if you want to get the federal tax credit, so you'd better start remodelling now. Once your green windows are in place, use the IRS Tax Form 5695 (this is the 2009 tax form version) to claim up to $1,500 in tax rebate for your green home improvements.