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2009 / 2010 Federal Tax Credit - Qualifying Products
As part of the American Recovery and Reinvestment Act of 2009, a Federal Tax Credit of up to 30% of the purchase price with a maximum credit of $1,500 is offered for qualifying improvements (windows, doors, insulation, furnace, etc.) to non-business properties. The credit is combined over 2009 and 2010 for eligible and qualifying products purchased and installed from January 1, 2009 through December 31, 2010.
Windows and doors meeting the following criteria are eligible:
- A U-Factor of less than or equal to 0.30 and
- A Solar Heat Gain Coefficient (SHGC) of less than or equal to 0.30.
U-Factor defines the amount of heat loss through the total unit in BTU/hr sq. ft2. The lower the value, the less heat is lost through the entire product.
Solar Heat Gain Coefficient (SHGC) defines the fraction of solar radiation admitted through the glass both directly transmitted and absorbed and subsequently released inward. The lower the value, the less heat is transmitted through the product.
Visible Transmittance (VT) measures how much light comes through a product (glass and frame). The higher the value, from 0 to 1, the more daylight the product lets in over the product’s total unit area. Visible Transmittance is measured over the 380 to 760 nanometer portion of the solar spectrum.
NFRC ratings are based on modeling by a third party agency and validated by an independent test lab in compliance with NFRC program and procedural requirements.
Our Regal Guardian 365 exceeds both the U-Factor (.26) and SHGC (.21).
Do all windows and doors qualify?
No. Only exterior windows and doors that achieve a U-Factor less than or equal to 0.30 and have a SHGC less than or equal to 0.30 will qualify for the tax credit.
Do all Energy Star windows and doors qualify?
No. Windows and doors can qualify for Energy Star labels with a U-Factor or 0.35. Only exterior windows and doors that achieve a U-Factor less than or equal to 0.30 and have a SHGC less than or equal to 0.30 will qualify for the tax credit.
How do I know what a window or door’s U-Factor and SHGC is?
All windows and doors are required to have an NFRC label showing the window or door’s U-Factor and SHGC.
Can a homeowner use the entire $1,500 limit toward the cost of having new windows installed in their home?
Yes. A homeowner may use the entire $1,500 tax credit on windows providing the total cost of the project uses the entire amount of tax credit available. If the total cost of the project does not use the entire $1,500, then a homeowner may qualify to use the remainder on another approved project.
What happens if the 30% of the qualified project is less than $1,500?
The homeowner can “bank” the remaining available tax credit for other qualified projects.
Can the homeowner claim $1,500 in tax credits for improvements in 2009, and then $1,500 in tax credits again in 2010?
No. Taxpayers are only eligible for a total of $1,500 in tax credits for improvements made in the combined two year period.
Does the tax credit apply to the cost of the qualified windows and doors, or the windows and doors plus installation costs?
The tax credit applies to the cost of the qualified windows and doors which does not include installation costs.
How will the taxpayer claim the tax credit?
In addition to their Federal Tax filing, taxpayers are not required to file anything more than the tax form 5695, Residential Energy Efficiency Property Credit. However, homeowners should keep all the NFRC labels from the qualified windows or doors and all contracts and/or sales receipts.
Can a homeowner claim the tax credit for a second home?
No. The tax credit is only available for improvements made to the primary residence.
If a homeowner qualified for a tax credit for qualified products in 2006 or 2007 are the eligible for the full $1,500 tax credit?
Yes. The Lifetime Limit was removed in the new stimulus bill.