New Windows Tax Credit
Thanks to a Bill called the American Recovery and Reinvestment Act, you can earn tax credits on energy saving windows! This bill extended and changed the Energy Policy Act of 2005 with expanded tax credits for energy-efficient home improvements, including windows and doors. Which means when you purchase Weathertite replacement windows and doors that meet specified guidelines, you’ll save two ways. First, you’ll save on home energy costs year round, then you’ll save even more with the 2009-2010 tax credit. Your applicable tax credit will be 30% of your purchase price, up to a $1,500 total credit for all qualifying products, including windows and doors.
How can you benefit from the Energy Tax incentive?
If you are planning to purchase replacement windows or doors, the energy tax incentive will save you money by applying a tax credit up to $1,500 to your federal tax return, provided you choose qualified products. The $1,500 tax credit is not a deduction. Deductions are used to calculate your total taxable income. This new tax credit is much more advantageous than a deduction because it is not based on your specific income tax bracket, but the qualifying products you purchase. You simply apply the tax credit to either the amount you owe to the IRS, or the refund amount that the IRS owes you. For example, if you owe the IRS $2,000 and can apply the $1,500 full amount of the energy tax credit, the amount you’ll owe will only be $500. Similarly, if you have a refund due of $2,000 and can apply the full $1,500 tax credit, your refund will increase to $3,500. If you purchase qualified replacement windows and doors before December 31, 2010, you will be able to take advantage of this tax credit.
How can you claim the Energy Tax incentive benefit?
Compliance with the requirements to apply the tax credit is easy. Your applicable tax credit will be 30% of your purchase price, up to a $1,500 total credit for all home improvement projects. To take advantage of the credit on Weathertite products, make sure your supplier orders products that meet the specific guidelines. Document your purchase by saving the Energy Star® rating labels found on all Weathertite Energy Star® qualified products for your tax records. Print and save the Manufacturer’s Certification Statement. Complete IRS Form 5695 (not available until late 2009 or early 2010) and submit it along with your purchase receipt and the Manufacturer’s Certification Statement when you are filing your federal income tax return. We’ll furnish you with all the information you need.
Want To Learn More?
If you call us we’ll be able to give you much more detailed information, and explain what products will work with your needs and budget.
Call us anytime: (770) 578-2333 for any Atlanta windows need.
