Local Rebates

Many local utilities provide financial incentives for purchasing ENERGY STAR qualified windows, doors, and skylights. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.


Federal Tax Credits

On February 17, President Obama 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:

* To qualify for the tax credit, windows, doors, and skylights placed in service after February 17, 2009 must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. You can find the U-factor and SHGC on the National Fenestration Rating Council (NFRC) label. See an example of the NFRC label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights. Please see the NFRC website Exit ENERGY STAR for information concerning product performance.

* Qualifying products purchased between February 17, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $1,500 during 2009 and 2010.

* For products purchased between January 1, 2009 and February 16, 2009, the terms of the tax credit are less clear. The Internal Revenue Service will likely clarify these terms in guidance documents, which are expected to be released later this year.

Installation costs are NOT covered by the tax credit for:   * Windows

The tax credit for windows, doors, insulation and roofs is for 30% of the cost of materials, up to $1,500


* 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, but the requirements for windows has been increased significantly. Not all ENERGY STAR qualified windows will qualify.



Additional information will be posted as it is made available.
Reprinted from: http://www.energystar.gov/index.cfm?c=windows_doors.pr_taxcredits