The tax rebate program varies. Check with you tax adviser. Other Q & A’s see Energy Efficient Window & Door Replacement FAQ to gain more knowledge!
While home improvement chains may be making you aware of the incentives and savings of new appliances, if you’re living in an older home you can save more on both fronts by looking at replacement windows.
Although not eligible for a rebate like the Energy Star appliances, these new energy efficient windows can save you a lot of money that you would normally spend on monthly utility bills, plus up to $1,500 will be deducted of your income tax.
As part of the stimulus bill, the tax credit is available to homeowners who upgrade their primary residence with energy efficient appliances and exterior additions such as windows, skylights and exterior doors. This offers you a chance to lower your income tax for next year by up to 30 percent of the product’s cost.
This tax credit will only be available to you once, but the other advantage you will get from this deal is that you will be able to reduce the monthly utility cost in your home for as long as you own it. Some estimates are that savings can be in the hundreds each year. Your savings also translate into environmental savings as less energy is needed for your home and into a more comfortable environment inside your home as well. These new windows and doors and skylights will certainly increase the value of your old home on the real estate market, should you decide to sell it.
To qualify, the windows, doors or skylights should be accompanied by a statement from the manufacturer stating the product meets the criteria for the credit.
Even if you’re good with handiwork, it wouldn’t be a bad idea if you hired someone to install your windows. Your best bet may be to take advantage of the services of a company that measures your windows, has new windows made to fit, removes your old, drafty windows, and puts the new windows in, all in the period of a few weeks. These local companies that may be able to offer better prices.
Before choosing a window or company, do your homework. Whether you consider a national brand of window, or one locally produced, find out the window’s ratings for energy transference – in keeping cold air and solar energy out. Energy performance, which shows on the windows label and should be in company literature, should show a U-factor and a Solar Heat Gain Coefficient (SHGC) of 0.30 or less to qualify for the credit. Before you make your choice, not only do you have to make sure that the window qualifies for the tax credit, but you also need to compare window and installation costs, so that you get a good price. When the windows are ready to be installed, you will want to schedule the work on a day when temperatures are mild and you can be at home.
Even when the tax credit is no longer available, with new windows and doors in your home you can look forward to a life of comfort and lower utility expenses.