What is the 2009 Tax Credit for Windows, Doors, and skylights?

If you have skylights and windows in your home that are drafty and old, it’s probably time to have them replaced with new and way more energy efficient ones. If you install ENERGY STAR labeled skylights and windows (made by a lot of different manufacturers), you can then qualify for the 2009 US federal tax credits which are there for you as financial support and an incentive for making this all important energy saving improvement on your home.

Because of President Obama’s stimulus bill, homeowners may now claim up to a $1,500 tax credit just for upgrading their personal home with energy efficient building components like skylights, doors and exterior windows and also appliances. This way you can lower your income tax by almost 30% of what you paid (doesn’t include installation cost) of any qualified product that you had installed in either 2009 or 2010.

This tax credit will help you save money in purchasing the skylights, doors or windows, yet the big money savings is what you will save in your lower energy bills. By upgrading to the energy efficient doors and windows you can literally save hundreds in cooling and heating costs every year. And, even better, these more efficient doors and windows will greatly enhance your comfort, lower condensation, conserve limited resources and help protect our environment.

In order for you to qualify the skylights, doors and windows must have a statement that is signed by the manufacturer which certifies that your product complies with all the proper criteria for the tax credit. Qualified skylights, doors and windows need to have (SHGC) Solar Heat Gain Coefficient and U-factor this is NFRC certified with ratings that aren’t over 0.30.

All of these criteria apply all over the United States. Having a low U-factor means that it has a good insulating value and that is very important in our cold climates. A low SHGC means the solar heat gain is low and that is very important in our hotter climates that have a high cooling demand. SHGC and U-factor ratings are found on the label of the NFRC.

Remember, always keep your manufacturer certification statements with all the records in a very safe place so you always have them if you ever need them.

Other Green Business Tax Credits

There is no better time then right now to get in on all the tax credits, financial incentives and rebates that are designed to encourage businesses and people to go green. On the federal level there are many financial incentives out there for businesses.

Some examples of the federal tax incentives are tax deductions for commercial buildings that are energy efficient, tax credit for energy reduction, tax credits for energy efficient appliances and there is a new tax credit for all those savvy green builders for being energy efficient.

The tax credits at state level will attract the renewable energy companies into their region as they offer tax breaks just to get them to come there. For example, Washington state does not charge sales tax on any renewable energy equipment that is made or sold there. A few cities that have forward-thinking are starting to offer green building incentives and “density bonuses” to builders and developers to encourage maintainable land use.

One of the best places to find what is out there for tax credits for your green business is to check out the (DSIRE) Database of State Incentives for Renewables & Efficiency on the Internet. This is a very comprehensive source full of information on federal, utility, local and state incentives that promote energy efficiency and renewable energy. The DSIRE is a project that is federally funded of Interstate Renewable Energy Council and their membership includes local and state government agencies, advocacy groups, renewable energy companies along with national laboratories.

There is a ten percent tax credit from the federal government for the investment or purchase of geothermal energy or solar property. This will include equipment which generates cools, heats or electricity using the solar energy along with any equipment that is used to distribute or produce energy from the geothermal source. The most you can receive from the tax credit a year is $25,000 plus twenty-five percent of the tax balance will be paid after the credit has been applied. If the business already claimed REPC then this credit can’t be claimed. If the project has already been subsidized by energy financing or tax exempt bonds, the credit will be reduced.