New 2011 Energy Tax Credit Explained

As a result of the passing of the federal bill to extend tax cuts, there are new 2011 tax incentives to encourage homeowners to make energy efficient improvements to their homes. Replacing windows and doors with energy efficient Infinity by Marvin fiberglass windows and ProVia’s fiberglass and steel doors qualifies for this tax credit.

Eligible windows and exterior doors need to be Energy Star qualified products.

Consumers can claim a credit of 10% up to $200.00 of the purchase price of qualifying windows, and 10% up to $500.00 for qualifying exterior doors. Installation costs are not included.

There is now a lifetime limit of $500.00 ($200.00 for windows) in total credits that a homeowner can claim from January 1, 2006 to December 31, 2011. It is not on top of the $1500.00 limit in 2009-2010. So if you have already reached or exceeded the $500.00 limit, you are no longer eligible to claim the credit in 2011. The $500.00 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc), not just windows and exterior doors. If you have claimed less than $500.00, you can claim the difference up to the $200.00 cap for the windows, and $500.00 for the exterior doors.

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

To learn more about Energy Star requirements please visit www.energystar.gov. The IRS will issue additional specific guidance soon. Check http://www.irs.gov for updated information.

 

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