Currently, when purchasing energy efficient windows, you can get a federal income tax credit equal to around thirty percent of the worth of the product or fifteen hundred, whatever comes first; this is higher than the $500 credit of 2007. Based on the stimulus bill signed by the president, this energy efficient tax credit for replacement windows will be available for you to use in 2009 and 2010. To take advantage of the current energy tax credit, you must be sure the new windows meet or outperform the “thirty/thirty” standards to qualify.
Be sure to find a quality company that manufactures these windows with the right label on the packaging of the window. Make sure that you have these so that you can document it.
These tags must state that the energy saving replacement windows meet, or exceed, the SHGC ratings, as this is what’s referred to as the 30/30 criteria. Put another way, the U-factor grading must be point three zero or less and the SHGC must be point three zero or less.
U-factor looks at what heat manages to escape through the glass of the window. If your product has a lower U-factor rating, it’s better at keeping heat from escaping. The amount of heat that is in the room that can from direct sunlight is known as the SHGC rating. Windows with lower SHGC ratings reduce the solar heat gain in the house. In a nutshell, the lower these numbers are, the less you’re spending to heat and cool your home, which equals in a lower heating bill.
If you want the best energy saving windows today, get the ones with triple plane glass, foam frames, argon gas, and low E coating. A single pane window just doesn’t cut it and are not eligible for the energy tax credit because just a single pane of glass is not a good enough insulator. If you get panes filled with argon gas, as well as low-E coating on the exterior, you’ll be more likely to qualify for the tax credit. You will want to ensure that the energy star sticker is displayed, and that your windows are properly graded prior to allowing them to be put into your house.
Verify the U-factor, SHGC grading, and the presence of the energy star sticker on the energy saving replacement windows you select before they are installed in your home. Keep in mind that windows that have the energy star label could possibly not be eligible for the tax rebate, but if no energy star sticker exists at all, those windows will definitely be excluded from the rebate. As mentioned before, be sure to save all the window manufacturer labels, along with all the documentation, to be submitted along with the special form and your tax return.
To get the tax rebate, you’ll have to submit an IRS Form 5695 with a receipt for the replacement windows that you payed for and the window manufacturers stickers and labels. Be aware this tax credit will lower total taxes owed the Gov., but it does NOT reduce the amount of money that you are required to pay taxes on. Also, new construction windows do not qualify for this energy credit, no matter what brand or type of window the contractor plans to install.
Purchasing quality energy saving widows is a large investment, I hope the information in the article listed above is helpful.
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