Tax Credit for Replacement Windows

Note: this is my interpretation of the new tax credit from information I have gathered from government resources. I am not the IRS or a tax professional (but, I am a very good window installer). It is best to consult your tax professional for their interpretation of the law. From the time the bill was signed until now, changes have been made. I am only offering this as general information.

Overview

On February 17, President Obama signed into law "The American Recovery and Reinvestment Act of 2009", also known as the Obama stimulus plan. It earmarks about $3 billion dollars to pay for tax credits to homeowners who make energy-related home improvements, such as, replacement windows and doors. The bill allows for a tax credit of 30% up to $1,500.00 for tax years 2009 and 2010. Of course, this is a great savings on the cost of the replacement windows, but the consumer will continue to save for years with the lower energy cost for heating and air conditioning.

Rebate Information for Windows

• Must be primary residence
• U factor of 0.30 or less
• Solar Heat Gain Coefficient (SHGC) of 0.30 or less
• All ENERGY STAR windows purchased before June 1, 2009 qualify for the tax credit even without a manufacturer's certification statement.
• Rebate on cost of window only, not on installation cost
• Maximum of $1,500 over the two year period (2009 & 2010) on all energy related improvements, except geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators