Federal Tax Credits
THV Compozit windows and patio doors help increase your home's comfort and energy efficiency. THV products may qualify for an energy tax credit of 30% of the products cost up to $1,500 on your federal income tax*
As part of the Economic Stimulus package, the American Recovery and Reinvestment Act of 2009 modifies and extends federal tax credits for eligible building components that improve energy efficiency. To be eligible, windows, doors and skylights must have both a U-Factor equal to or less than 0.30 and a Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.
*THV Compozit windows from Advanced Home Technologies, Inc. with Double Low-E Krypton/Krypton glass packages may qualify when used for remodeling, replacement or home improvement. Please consult your tax planner and review all IRS guidelines. Advanced Home Technologies, Inc. is not a tax advisor.
Federal Tax Credits
The Energy Policy Act of 2005 that allowed consumers to receive a federal tax credit for energy efficient improvements made on their home in in 2006, 2007, and 2009. Energy efficient improvements made on homes in 2008 are not included.
The following guidance is from the Energy Policy Act of 2005 and accompanying Internal Revenue Service (IRS) Guidance Notices. It is not intended as legal advice, and you should consult a tax professional with specific questions.
Frequently Asked Questions:
Q: What is a tax credit?
A: Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself, or increases the amount of your federal tax refund.
Q: When is the deadline?
A: The tax credit applies to improvements made from January 1, 2006 through December 31, 2007 and from January 1, 2009 through December 31, 2009. April 15, 2008 was the deadline to claim a credit for window, door, and skylight purchases on 2007 taxes. April 15, 2010 is the deadline for claiming a credit for window, door, and skylight purchases on 2009 taxes.
President Obama signs new stimulus bill (The American Recovery and Reinvestment Act of 2009) Feb 17th that raised the Federal Energy Tax Credit from $500 to $1,500 President Obama signs stimulus bill! Raises energy tax credit to $1,500"
Q: How much money will I receive for installing windows and doors?
A: On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009
that made some significant changes to the energy efficiency tax credits. The highlights are:
- The tax credits that were previously effective for 2009, have been extended to 2010 as well.
- The tax credit has been raised from 10% to 30%.
- The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1500 for the two years (2009 2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
- The $200 cap on windows has been removed.
Q: What windows & doors are eligible for the federal tax credit?
A: All ENERGY STAR qualified windows and that are installed in the taxpayer's primary residence and are qualified in the appropriate ENERGY STAR climate zone are eligible to receive a tax credit. Most ENERGY STAR qualified exterior doors installed in the taxpayer's primary residence and qualified in the appropriate climate zone are also eligible to receive a tax credit, with the exception of exterior doors installed in certain parts of California.
Storm windows and storm doors are also eligible for tax credits. See http://www.energystar.gov/taxcredits for more information on tax credits for storm windows and storm doors.
Q: How do I know which climate zone I live in?
A: The map below shows the ENERGY STAR climate zones.
Example of an ENERGY STAR/NFRC label:
Q: What documentation do I need to provide to receive the tax credit?
A: You need to fill out IRS Form 5695. This documentation was due April 15, 2008 for 2007 taxes and will be due April 15, 2010 for 2009 taxes.
In addition to the above form, for windows and skylights, homeowners should save:
- Purchase receipts
- All ENERGY STAR/NFRC labels from the installed windows and/or skylights
For exterior doors, homeowners should save:
- Purchase receipts
- Manufacturer's Certification Statement or equivalent, which proves the product is eligible.
**The above is the best available information and 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 here on the IRS website for more details. Advanced Home Technologies, Inc. bears no responsibility in the validation of obtaining the tax credit. Please consult with a professional tax advisor or the IRS. Additional information can be found at: http://www.energystar.gov/taxcredits
Advanced Home Technologies, Inc. expressly disclaims any responsibility for determining whether a particular product qualifies for the tax credit. Further, Advanced Home Technologies, Inc. does not intend to and is not providing legal or tax advice and recommends that purchasers consult their own tax advisor to determine whether the products they purchase qualify for the tax credit.
"ENERGY STAR" is a registered trademark of the U.S. Environmental Protection Agency. AHT logos are registered trademarks of Advanced Home Technologies, Inc. All rights are reserved 2009.
