1500 Energy Tax Rebate
on windows, doors, furnaces and skylights
As of February 2009, upto $ 1500 energy tax rebate can be claimed on the purchase of Energy Star doors, windows and skylight. This is an opprtunity to upgrade your home. On December 31st 2010 this "1500 energy tax rebate" provision was drastically reduced - see the paragraph bellow
2011 Tax Credit Changes
The generous $1500 energy tax rebate that was available for tax years 2009 and 2010 is not available any more. In lieu, much less generous tax provisions were approved for tax year 2011.
Households that have applied for the 2009-2010 generous tax credits cannot re-apply for the new 2011credit.
The new energy efficient tax credit is only a 10% credit (compared to 30% in 2010), up to a maximum of $500 (rather than the generous $1,500 that was valid until December 31st 2010.)
- Of that, only $200 for Energy Star windows can be applied.
- For exterior doors, you may be qualified for a 10% credit up to $500
- Even for these lean tax credit there are rules you need to follow to be eligible:
The doors & windows are used to improve existing homes home energy efficiency (not new homes though), meet the Energy Star criteria, and “put into service” in the “main residence” of the applicant taxpayer before December 31st 2011.
- Furnaces are only allowed to get a $200 credit and they must now be 95% efficient. (more demanding than the 90% 2009/10 requirement)
- Wood heating systems are eligible for a max $300 credit.
I reiterate my advice to use the window of opportunity on the generous no-limit 30% home solar power and home wind power energy tax credit before it expires
, presumably in 2016 or before the legislators changes their mind, whichever comes first.
The Tax Credit Guidelines
Here are the guidelines describing the points to pay attention to:
- The $ 1500 energy tax credit is on purchase (not installation though) of doors, windows and skylights . The tax rebate is 30% of the goods value. The maximum tax credit is $1500.
- To qualify, the windows, doors and skylight should have a U-factor and Solar Heat Gain Coefficient (SHGC) less than 0.3. You can see it on the label of the NFRC (National Fenestration Rating Council)
- The $1500 1500 energy tax rebate is on all home improvements (roofing, insulation, etc.)combined, applicable to 2009 and 2010.
How to claim the 1500 energy tax credit
- Purchase and install any replacement window, patio door, or entry door with a U-Factor and SHGC of .30 until December 31, 2010.
- Save your receipt and each window and door performance label (NFRC label)
- Claim your tax credit on your 2010 Federal tax return
- If you already purchased and installed eligible windows and doors in 2009 and you retained the receipts and NFRC labels - claim you tax credit on the 2009 tax return
For what are energy efficient windows, what is the NFRC label and what are SHGC and U-factor, click to view my page Energy Efficient Replacement Windows
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