Save energy. Save money. What could be better?
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This law extends the tax credits for energy-efficient product purchases into 2011, but at lower levels than what they were in the past two years. The levels revert to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to a total credit of $500, with several established maximum levels, including a $200 maximum for energy efficient window purchases.
- Must be “placed in service” between January 1, 2011 and December 31, 2011.
- Must be installed in the taxpayer’s existing principal residence.
- 10% up to $500 cap for doors, but they must meet Energy Star® criteria.
- 10% up to $200 cap for windows, but must meet Energy Star® criteria.
- $500 lifetime limit. If you received $500 or more in energy tax credits from
2006-2010,
you are not eligible to receive this tax credit. - Must have a Manufacturer Certification Statement
- Improvements made in 2011 will be claimed on your 2011 taxes using IRS Tax
Form 5695 (2011 version). - If you are building a new home, you will not qualify for the tax credits for windows and doors.
Individuals are eligible for the Federal Tax Credit if they purchase and install qualified replacement windows or doors between January 1, 2011 and December 31, 2011. In order to qualify, the replacement windows or doors must meet established 2010 Energy Star guidelines U-value and Solar Heat Gain Coefficient values. Your applicable tax credit will be 10% of your purchase price of qualifying products, up to a $500 total credit for doors and $200 for windows. The purchase of the qualified windows must be made during the taxable year for which the credit is being applied, and can only be applied against the price of the qualified windows or doors themselves – it cannot be applied to installation costs, product assembly or sales tax.
If you are planning to purchase replacement windows or doors, the energy tax incentive will save you money by applying a tax credit to your federal tax return, provided you choose qualified products. The tax credit is not a deduction. Deductions are used to calculate your total taxable income. This new tax credit is much more advantageous than a deduction because it is not based on your specific income tax bracket, but the qualifying products you purchase. You simply apply the tax credit to either the amount you owe to the IRS, or the refund amount that the IRS owes you. For example, if you owe the IRS $2,000 and can apply $500 of the energy tax credit, the amount you’ll owe will only be $1,500. Similarly, if you have a refund due of $2,000 and can apply the full $500 tax credit, your refund will increase to $2,500. If you purchase qualified replacement windows and doors before December 31, 2011, you will be able to take advantage of this tax credit.
In order to qualify for the 2011 Energy Tax Credit, windows and doors must meet the 2010 Energy Star® Criteria. By choosing Wincore®, you will find a variety of energy-efficient windows and doors that qualify for this tax credit. Click on the link below to download and print a list of qualifying products. As our product offerings continue to expand, this list will be updated. For more information on product requirements, visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
View & print the Manufacturer's Certification Statement (PDF Format)
View & print the Manufacturer's Certification Statement (PDF Format)
Compliance with the requirements to apply the tax credit is easy. Your applicable tax credit will be 10% of your purchase price, up to a $500 total credit for doors and $200 for windows. To take advantage of the credit on Wincore® products, make sure your supplier orders products that meet the specific guidelines. Complete the 2011 IRS Form 5695 and submit it along with your purchase receipt and the Manufacturer's Certification Statement when you are filing your federal income tax return. For more information on claiming the Energy Tax Credit, visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
View & print the Manufacturer's Certification Statement (PDF Format)
View & print the Manufacturer's Certification Statement (PDF Format)
Investing in your home is always a good idea. In today’s economy, it seems to be one of the safest investments you can make. There are several advantages to purchasing energy-efficient windows and doors over other home improvement projects like adding insulation or a new air conditioning system. Experts* rank replacement windows as having one of the highest return-on-investment rates of all home improvement projects. In addition, energy-efficient replacement windows and doors start to help reduce your heating and cooling costs as soon as they are installed. What’s more, Wincore’s® wide variety of window shapes and styles enhances curb appeal and the low-maintenance vinyl ensures lasting beauty.
* Source: Remodeling 2008-09 Cost VS. Value Report
http://www.remodeling.hw.net/2008/costvsvalue/national.aspx
* Source: Remodeling 2008-09 Cost VS. Value Report
http://www.remodeling.hw.net/2008/costvsvalue/national.aspx
Wincore® Windows and Doors does not claim to be a legal, tax or financial advisor. The information included is not comprehensive. For comprehensive information, please consult your tax advisor. Wincore® is not responsible for determining if window order(s) qualify for a tax credit, or if the purchaser will receive a tax credit. Review IRS Energy Tax Credit guidelines prior to purchasing.
