Energy Tax Credits - Energy Efficiency

This seems to be the Government's Best Kept Secret these days. "The American Recovery and Reinvestment Act of 2009". The energy tax credit that the government is issuing for home owners who purchase windows and doors that meet certain qualifications in the U-Factor and SHGC, the Solar Heat Gain Efficiency ratings. These windows are considered to be Energy Efficient, and therefore are going to reduce heating and cooling bills, which saves you money, saves our natural resources, and saves the Government money over time. It seems to be a win-win situation, but you need to follow the rules!

Well, first you need to buy a window or door that meets certain ratings. Doors from some of the larger window manufacturers like Andersen, Pella, and Marvin tend to make doors and windows that qualify for the specific energy ratings necessary for the credit. Typically their 'high performance' glass windows or doors with some exceptions will qualify. The trick is to have a SHGC and U-Factor less than or equal to .30! You can find specific statistics on the individual manufacturer's websites.

When you buy the appropriate door or window, they need to be 'new units' (like for an addition or a replacement) and they need to have been purchased after 1/1/09. Don't fret if you purchased your new home before then, the IRS has specific stipulations where you could have purchased them prior to January of '09 at this website. This also must be your primary residence in the United States.

No silly.  The 1500 dollars is the maximum amount that the credit will be for.  What you get is calculated like this: 30% of the cost (not including labor) UP to $1500.  Other energy efficiency improvements may qualify also, so ask a tax professional if you aren't sure.

First of all, save your receipt! Next, there will be what are referred to as NFRC labels that come on your windows. You can use that, or a manufacturer's certification statement as well. The stickers seem like the safer choice, so I would use those if I were you!

Then, when you are preparing your taxes for '09 or '10,

If you want real specifics, find the information on your window manufacturer's website, then speak with a tax professional or lawyer. This information is accurate as far as I know it, but I am not liable if you do something wrong, or if I've given you wrong information. Speak to your tax preparer, they are up to date on all of the tax laws.  The energy tax credit is a great idea, but you need to follow the rules :)