Home Improvement Tax Credits
Most people are aware that there are some Federal and possibly State Tax Credits that you can use for your home. Problem is, everyone hears about them, but you usually aren’t sure how it works.
Before filling your taxes, the first thing you want to do, in order to claim your home improvement tax credit is: Save Your Receipts.
On February 17, the President signed into law the American Recovery and Reinvestment Tax Act of 2009. This bill extends and modifies the tax credits for windows, doors, and skylights established in the Energy Policy Act of 2005.
The following guidance is not intended as legal advice, and you should consult a tax professional with specific questions.
*** Qualifying products purchased between January 1, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost.***
Installation is not included; be sure to obtain an itemized invoice from your retailer or installer. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $1,500 during 2009 and 2010.
Products Purchased before June 1, 2009
Criteria: Windows, doors, and skylights purchased before June 1, 2009 must meet or exceed the prescriptive criteria established by the 2001 Supplement of the 2000 International Energy Conservation Code (IECC) or the 2004 Supplement of the 2003 IECC for the climate zone in which the product is installed.
Documentation: For windows and skylights, homeowners may use either ENERGY STAR labels or manufacturer certification statements to document eligibility for the tax credit.
Doors are required to have a manufacturer certification statement.
Products Purchased on or after June 1, 2009
Criteria: Windows, doors, and skylights purchased on or after June 1, 2009 must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less. Look for the NFRC label, your item must have this label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights.
Documentation: Homeowners must obtain a manufacturer certification statement to document window, door, or skylight eligibility for the tax credit.
If the retailer or installer cannot provide this document, it may be available on the manufacturer’s Web site.
You can visit ENERGY STAR for a more complete breakdown on what does/does not qualify, and to learn what the limits are.
