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Federal Income Tax Credit on Replacement Windows Increased
Glass Doctor offers energy-efficient replacement glass windows that meet or exceed the new "30/30" criteria for the federal income tax credit of 30 percent of product cost up to $1,500.
By: Glass Doctor
Unlike tax credits for energy-efficient windows and doors in prior years, the “30/30” criteria is stricter than the government’s Energy Star rating program. Not all Energy Star labeled windows and doors will qualify for the new tax credit.
Consumers should look for the manufacturer’
“The U-factor rating measures the passage of heat through the glass. Windows with lower U-factor ratings are more energy efficient,” Glass Doctor President Mark Dawson said. “The SHGC rating measures the percentage of heat in the room gained from absorbed heat and direct sunlight. Windows with lower SHGC ratings reduce the solar heat gain in the house.”
The most energy-efficient replacement windows on the market, triple-pane replacement windows with gas insulation (commonly called Insulated Glass Units or IG units), are eligible for the tax credits. Single-pane windows are not eligible for the energy-efficient tax credit because glass by itself is not an insulator.
Double-pane replacement windows with low-E coating or gas insulation probably will qualify. Customers should insist on checking for the Energy Star label as well as the U-factor and SHGC ratings on the replacement window manufacturer’
"Glass Doctor (http://www.glassdoctor.com) recommends purchasing windows from manufacturers such as MI Windows and Doors that have a proven record of high-quality energy-efficient products with the Energy Star seal," Dawson said. "MI Windows and Doors has developed a special line of double-pane windows for Glass Doctor. With next generation warm-edge spacer technology, the ETC30 glass package includes high performance low-E coatings and argon insulation enhancement."
The federal energy efficiency tax credit is allowed only on the cost of the qualified replacement window products. The tax credit is not allowed on installation services, onsite preparation, assembly, or state sales taxes. Windows for new homes do not qualify for the tax credit, no matter what type of window is installed.
Customers will have to submit an IRS Form 5695 with a receipt for the replacement window purchase and the window manufacturer labels and stickers. A tax credit reduces the amount a taxpayer owes the government in taxes; it does not reduce the amount of income on which the taxpayer owes taxes.
Taxpayers should consult their tax planner or accountant and review all IRS guidelines. Glass Doctor is not a tax advisor. The above is a partial summary of the revisions to the federal tax code (U.S. Code Title 26, Section 25C) as updated by the American Recovery and Reinvestment Act of 2009. Taxpayers should check with the IRS regarding updates to the IRS interim guidance in Notice 2006-26 for further details on the tax credit. Other energy efficient improvements may apply; check the following link and the IRS website for more details at http://www.irs.gov/
For more information about the Energy Star ratings, see the Energy Star web site at http://www.energystar.gov/
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In addition to replacement services for home, auto and business, Glass Doctor offers custom glass services, such as tub and shower enclosures, entry door glass and mirrors. To find the location in the U.S. or Canada near you, visit www.glassdoctor.com.