Energy Efficiency Tax Credit


FEDERAL ENERGY EFFICIENCY TAX CREDIT ON REPLACEMENT WINDOWS AND DOORS - SAVE UP TO $500!

For over 30 years, Republic West Home has helped homeowners save energy and money with our Protec Series line of ENERGY STAR® qualified Vinyl Replacement Windows, Patio Doors and Exterior Doors. Now, Republic West Home Protec Series windows, French doors and patio doors can help you save even more with the Federal Energy Efficiency Tax Credit (the “Tax Relief Unemployment Insurance Reauthorization and Job Creation Act HR 4853 signed into law on 12/17/10).

The Federal Energy Efficiency Tax Credit is a 10% rebate of the product cost - up to $500 on your federal income tax for the year 2011. Republic West Home ProTec Series replacement windows, patio doors and exterior doors meet the Energy Star criteria and qualify for the new tax credit!

Qualifying products, including Republic West Home Protec Series Energy-Efficient Windows and Doors purchased and installed in a primary residence between January 1, 2011 and December 31, 2011 (Installation by 12/31/2011 to qualify) are eligible.

Credit Amount:

Consumers can claim a credit of 10% up to $200 of the purchase price of qualifying windows and skylights and 10% up to $500 for qualifying exterior doors. Installation costs are not included.

Lifetime Cap:

There is now a lifetime limit of $500 ($200 for windows/skylights) in total credits that a homeowner can claim dating back from Jan 1, 2006 to Dec. 31, 2011. The new credit is NOT in addition to the previous $1,500 credit limit in 2009-2010. So if a consumer has already received $500 or more in energy efficient tax credits in prior years, they are no longer eligible to claim credit in 2011. The $500 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc), not just windows, doors and skylights. If they have claimed less than $500, they can claim the difference up to the $200 cap for windows and skylights and $500 for exterior doors.

Duration:

The revised tax credit is in effect for products installed in a consumer’s primary residence between January 1 and December 31, 2011. Additional Information: The government is expected to post additional information at http:www.energystar.gov. The IRS is expected to post official guidance at http://www.irs.gov in early 2011. Circumstances vary widely, so consumers should consult with their tax adviser for further guidance.

Further Facts about the 2011 Federal Tax Credit for Windows and Exterior Doors

The tax credit made available to homeowners as part of Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law December 17, 2010, extends certain energy efficient tax credits for qualifying windows, skylights, and exterior doors for a period of one year.

  • What windows and doors are eligible for the credit?

    Windows exterior doors that meet the ENERGY STAR rating.

  • How much is the tax credit?

    The tax credit is up to $200 for windows and up to $500 for exterior doors. The maximum credit for all taxable years for qualifying products is $500 — no more than $200 of the credit can be attributable to expenses for windows.

  • What percentage of the product(s) purchase price is eligible?

    Ten percent of the purchase price up to the cap listed in #2 (not including labor or materials for installation).

  • When does the tax credit take effect and how long does it last?

    The tax credit begins January 1, 2011 and expires December 31, 2011. Purchasers of qualifying windows, skylights, and exterior doors must have them installed in their principal residence by December 31, 2011.

  • How does the tax credit compare to the previous credits? Are consumers who took advantage of those credits eligible for the new tax credit?

    The 2011 tax incentives revert to the 2005-2008 levels: 10% of the cost installing efficient windows. Anyone who has taken advantage of the 2006 - 2010 programs cannot apply for incentives that exceed the cap. Example: if a consumer claimed $500 in 2006 for a qualifying exterior door, the tax credit is exhausted; if only $300 was claimed in 2009, $200 can still be claimed - for a total of $500.

  • Where can I get more information on the tax credits?

    Visit energystar.gov. The IRS will issue additional specific guidance soon. Check http://www.irs.gov for updated information.

    This information represents the best information available as of December 20, 2010. It summarizes the changes to the IRS Federal Tax Code (US Code Title 26, Section 25C) amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

This information is not intended to constitute legal or tax advice. More comprehensive information will be made available by the IRS. Individuals should consult their own independent tax advisers for further advice related to their eligibility for specific tax credits.