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Qualify for Windows and Doors Tax Credit

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The federal government's stimulus package includes many new tax credits for homeowners considering renovating their home. To qualify for these new tax credits, you will need to make qualifying home improvements that increase the energy efficiency of your home. Most homeowners expect to make these type of renovations to reduce their monthly utility bills. Installing new windows and doors is a popular upgrade for homeowners. Now, the governement is providing you an extra incentive to help offset the cost of this improvement.

Many homeowners are not familiar with tax credits and how they affect your bottom line. A tax credit is a dollar per dollar reduction of your taxes owed. The amount of any tax credit earned would be subtracted from any taxes owed. Conversely, the amount of any tax credit earned would be added to any tax refund you are eligible for. Thus, a tax credit will help you pay for the new energy efficient home improvement.

The tax credit is valid for any purchase and installation of qualifying materials between January 1, 2009 and December 31, 2010. If you have the work performed in 2009 you can claim the credit on your 2009 tax return that you will file in 2010. The tax credit is for the total of the two years.

The tax credit is 30% of the expense of the materials, up to a maximum amount of $1,500. Note that this does not include any labor and installation charges, just the materials expense. The maximum $1,500 is for the entire two years of 2009 and 2010.

To qualify for the new tax credit, the new windows and doors should be LoE2-272, LoE3-366, tripane glass, other speciality glass and storm doors that meet the federal government's critera. All qualifying materials will have a Manufacturer's Certification Statement verifying their energy standards. To qualify for the maximum $1,500 credit, at least $5,000 of your expenses will need to be the energy efficient windows and doors that meet a 0.30 U-Value and 0.30 SHGC. Also, the home improvement must be made to your principal residence, not a second home or vacation home.

Upgrading your windows and doors to new energy efficient styles will greatly reduce your heating and cooling bills. These tax credits can make the initial expense a little easier to swallow. Contact a professional window and door contractor to help you choose from qualifying windows and doors. They can install the new windows and doors for you safely and quickly.

by Jennifer Weldon

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