Tax-Credits

Timing is everything, isn’t it? If you’ve been considering a replacement project for your home’s windows and doors, the time is now. Tax credits for 2011 are available and you can take advantage of them if you purchase qualifying windows and/or exterior doors for your home. 

As a result of the federal government passing the tax cut extensions, new 2011 tax incentives are being offered to encourage homeowners like you to make energy efficient improvements to their homes. To qualify, windows and doors must be Energy Star Qualified products. A few changes to the 2010 incentives are now in effect; keep reading to find out more about these changes and then come in and talk to one of our representatives to see how you can take advantage of the great savings.

Energy Star Qualified

Created by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) the Energy Star qualification was created to reduce greenhouse gas emissions and other pollutants caused by inefficient energy use, and to make it simple for consumers to identify and purchase energy-efficient products. Products that receive the Energy Star seal meet strict energy efficiency guidelines that save money and protect the environment. 

In order for a product to qualify they must:

• Contribute to significant energy savings nationwide.

• Deliver features and performance demanded by consumers.

• Increase energy efficiency.

• Product energy consumption and performance can be measured and verified through testing.

• Energy efficiency can be achieved through broadly available, non-proprietary technologies offered by more than one manufacturer.

• When purchasing qualified products costing more than their conventional, less-efficient counterpart, purchasers will recoup their investment in increased energy efficiency through utility bill savings within a reasonable amount of time.

Learn more about Energy Star for homes and business on the Energy Star website. Requirements differ by region. 

Incentive Changes

While it’s true that the 2011 tax exemption is an extension of the tax credits established in 2010, there have been changes in the incentives that are important to know. The changes are as follows:

• Consumers who purchase qualifying windows can claim a credit of 10% up to $200 of the purchase price. Installation costs are not included.

• Consumers who purchase qualifying exterior doors can claim a credit of 10% up to $500 of the purchase price. Installation costs are not included.

• There is now a lifetime limit of $500 ($200 for windows) in total credits a homeowner can claim between January 1, 2006 and December 31, 2011. This is not on top of the $1500 limit established for 2009-2010. Homeowners who have already reached or exceeded the $500 limit are no longer eligible to claim credits in 2011.

• The $500 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc.) and is not limited to windows and exterior doors. Homeowners who have claimed less than $500 can claim the difference up to the $200 cap for windows and $500 for exterior doors.

• The revised tax credit policy is in effect for products installed in a consumer’s primary residence Between January 1 and December 31, 2011.

For more information on tax credits and incentives review the Internal Revenue Service website.

If you have been putting off that home improvement project that will increase the energy efficiency of your house, this is the perfect time to act. Come in and visit Renaissance Windows & Doors to discuss your home’s energy efficiency needs and let us show you our selection of Energy Star qualified products.