Window Entry
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Window Entry
Filing Taxes For 2008? Understand The Energy Tax Credit Requirements For New Windows And Doors
In 2006 the US federal government gave homeowners a tax credit for energy-efficient home improvements like replacement windows, entry doors, and patio doors. The tax credit was worth 10% of the cost, up to $500. Any energy-efficient home improvement made between January 1, 2006 and December 31, 2007 qualified for the tax credit.
Congress and President Bush reinstated the tax credit in October 2008 for the year of 2009. However, the tax credit was not retroactive. Home improvements made in 2008 do not qualify you for the tax credit.
In February of 2009, Congress and President Obama passed the American Recovery and Reinvestment Act, more commonly called "The Stimulus." This extended the 2009 tax credit through December 31, 2010. It also increased the total worth of the credit to $1,500.
Because of the on again, off again nature of the tax credit and the recent changes, you may have questions about how and whether you qualify.
What were the energy requirements for the tax credit in 2006 and 2007? Any Energy Star certified product was eligible for the original tax credit.
What was the original tax credit worth? The tax credit covered 10% of the cost of the product, excluding installation. You could claim up to $300 on windows alone, and up to $500 on doors. If you bought a combination, you could only claim up to a maximum of $500.
Do I get a credit if I replaced windows and doors in 2008? Unfortunately, no. Congress let the tax credit lapse in 2008. They restored it for 2009, but it was not made retroactive. Any home improvements made in 2008 do not qualify you for the tax credit.
How has the tax credit been changed by the Stimulus? The Stimulus extends the tax credit to 2010 and raises the value. Any purchase made between January 1, 2009 and December 31, 2010 is eligible for a tax credit of 30% of the cost of the product, up to $1,500. You can claim the whole $1,500 on windows, doors, or both.
To qualify for the tax credit, you must choose windows and doors that meet new energy standards. These requirements exceed current Energy Star standards. Many products eligible for the credit in 2006 and 2007 are no longer eligible. To find out how to qualify for the new tax credit, visit:
2009 Energy-Efficient Tax Credit
If I claimed the tax credit in 2006 or 2007, can I claim it again now? Yes! The old and new tax credits are separate. If you claimed your $500, you can still qualify for additional credit on new home improvements for purchases made in 2009-2010.
Can I claim the tax credit on investment or vacation homes? Only your primary residence is eligible for the tax credit.
I’m building a new house. Can I get the tax credit? Tax credits are available for new construction; however, the values and requirements are different. Visit Energy Star for more information.
About the Author
Gerry Rogers is the owner of Mr. Rogers Windows in North Carolina and Virginia. Discover a wide selection of energy-efficient, maintenance-free windows and doors, all backed by a lifetime guarantee.
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