Federal Income Tax Credit on Replacement Windows Increased

March 30, 2009 - PRLog -- Energy-efficient replacement glass windows and doors that meet or exceed the “30/30” criteria now qualify for a federal income tax credit of 30 percent of the cost up to $1,500 per household. The tax credit is available in 2009 and 2010 according to the economic stimulus bill signed by President Barack Obama on Feb. 17.

Unlike tax credits for energy-efficient windows and doors in prior years, the “30/30” criteria is stricter than the government’s Energy Star rating program. Not all Energy Star labeled windows and doors will qualify for the new tax credit.

Consumers should look for the manufacturer’s labels on the glass window product packaging. The labels should show that the qualifying replacement glass windows meet or exceed U-factor and Solar Heat Gain Coefficient (SHGC) ratings, also called the “30/30” criteria. In other words, the U-factor rating must be .30 or less and the SHGC must be .30 or less.

“The U-factor rating measures the passage of heat through the glass. Windows with lower U-factor ratings are more energy efficient,” Glass Doctor President Mark Dawson said. “The SHGC rating measures the percentage of heat in the room gained from absorbed heat and direct sunlight. Windows with lower SHGC ratings reduce the solar heat gain in the house.”

The most energy-efficient replacement windows on the market, triple-pane replacement windows with gas insulation (commonly called Insulated Glass Units or IG units), are eligible for the tax credits. Single-pane windows are not eligible for the energy-efficient tax credit because glass by itself is not an insulator.

Double-pane replacement windows with low-E coating or gas insulation probably will qualify. Customers should insist on checking for the Energy Star label as well as the U-factor and SHGC ratings on the replacement window manufacturer’s labels before allowing the windows to be installed. If a customer has a question about whether or not the double-pane windows qualify, the customer should contact the window manufacturer directly.

"Glass Doctor (http://www.glassdoctor.com) recommends purchasing windows from manufacturers such as MI Windows and Doors that have a proven record of high-quality energy-efficient products with the Energy Star seal," Dawson said. "MI Windows and Doors has developed a special line of double-pane windows for Glass Doctor. With next generation warm-edge spacer technology, the ETC30 glass package includes high performance low-E coatings and argon insulation enhancement."

The federal energy efficiency tax credit is allowed only on the cost of the qualified replacement window products. The tax credit is not allowed on installation services, onsite preparation, assembly, or state sales taxes. Windows for new homes do not qualify for the tax credit, no matter what type of window is installed.

Customers will have to submit an IRS Form 5695 with a receipt for the replacement window purchase and the window manufacturer labels and stickers. A tax credit reduces the amount a taxpayer owes the government in taxes; it does not reduce the amount of income on which the taxpayer owes taxes.

Taxpayers should consult their tax planner or accountant and review all IRS guidelines. Glass Doctor is not a tax advisor. The above 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 the following link and the IRS website for more details at http://www.irs.gov/newsroom/article/0,,id=97322,00.html. Glass Doctor bears no responsibility in the validation of obtaining the tax credit. Please consult with a professional tax advisor or the IRS. Glass Doctor expressly disclaims any responsibility for determining whether a particular product qualifies for the tax credit.

For more information about the Energy Star ratings, see the Energy Star web site at http://www.energystar.gov/index.cfm?c=products.pr_tax_cre...

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In addition to replacement services for home, auto and business, Glass Doctor offers custom glass services, such as tub and shower enclosures, entry door glass and mirrors. To find the location in the U.S. or Canada near you, visit www.glassdoctor.com.