Everyone in real estate seems to know about the 2009 First Time Home buyer Tax Credit [see blog posting]. Yet, many homeowners might not know that there is a a tax credit available for those who are interested in replacing their windows and exterior doors. As part of the American Recovery and Reinvestment Act, there are great opportunities for making home improvements.
If you're planning to replace your windows, entry or patio doors with new, energy-efficient models, 2009 may be the year to do it! You can receive a tax credit for 30% of the cost of qualified energy-efficient windows and doors up to a maximum of $1,500.00.
Only doors and windows with a U-Factor of .30 meet the requirements for the energy tax credit. U-Factor is a measure of the window's overall energy-efficiency. Windows that have a U-Factor of .31 or .32, for example, do not qualify.
Windows and doors also need a Solar Heat Gain Coefficient (SHGC) of .30 or less. A low SHGC blocks the heat of the sun, reducing the load on your air conditioning. Again, .31 or .32 isn't good enough. It has to be exactly .30 or less.
Be sure to shop around and be well informed. Not every brand qualifies for the tax credit - even expensive brands you may have heard of. Also, the tax credit is applied to the cost of the product only and does not include installation costs. Be sure to ask for a sales receipt that shows the cost of the product only.
To qualify, you must purchase and install any replacement window, patio or entry door with a U-Factor and SHGC of .30 or below between January 1, 2009 and December 31, 2010. You can claim your tax credit on your Federal filing for the 2009 or 2010 tax year.