You may be eligible for an IRS Energy Tax Credit of up to $1,500 if you purchase qualified replacement windows, doors or skylights. On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2011 was signed.
The American Recovery and Reinvestment Tax Act of 2009 provides the tax credit for windows, doors, and skylights. The maximum tax credit a homeowner can take is $1,500 combined (including roofing, insulation, HVAC, and water heaters) for 2009 and 2010.
DISCLAIMER: This information is not intended to constitute legal or tax advice. You should consult your independent tax advisers. More information is available in IRS notice 2009-53.
How Do You Qualify For the IRS Energy Tax Credit?
To be eligible for the energy tax credit, the windows, doors or skylights must meet the following criteria:
- Meet ENERGY STAR program requirements
- Be installed in your primary residence
- Be installed by December 31, 2011
The tax credit is equal to 10% of the product cost (not including installation) up to:
- $200 for eligible windows and skylights
- $500 for eligible doors
You may receive no more than $500 total for all energy efficiency tax credits. These caps are also the new “lifetime limits” for the taxable years of 2006 to 2011. If you claimed an energy efficiency credit in a previous taxable year you may not be eligible for this credit.
The IRS has not yet determined what documentation you must retain when claiming this tax credit. To be safe you should save all available documentation, such as purchase receipts, ENERGY STAR labels, and manufacturers’ certification statements.
Determining if Windows Qualify
The following Energy Star labels make it easy to determine if windows qualify for the tax credit.
