How to Be Eligible for the Energy Tax Credit

Have you heard about the energy tax credit or stimulus package that gives people a tax rebate for making their homes more energy efficient, saving them tons of money on their energy bills AND taxes? Well, here is the place to really learn all you can about the energy tax credit.

The Federal Energy Tax Credit has got to be the United State's most asked about tax stimulus package in this decade, even more so than Cash for Clunkers. This is officially titled "The American Recovery and Reinvestment Act" that allows home owners who buy energy efficient replacement doors and windows that meet specific purchasing criteria, or who do other energy saving features to their home, to claim up to fifteen hundred dollars on their taxes.

When purchasing windows and doors, the federal government looks for the U-Factor (or the U-Value) of a window, and the Solar Heat Gain Efficiency (SHGC) of the window to determine if they are energy efficient enough to be eligible for a tax credit. With low SHGC and U-Factors, your windows will allow less ulta violet light into your home, and keep more heat inside your home, making you save money on both heating and cooling bills. This turns out to be a great idea, because it saves our planet's natural resources, saves the consumer money, and saves the government money. Please make sure you are following the rules, otherwise you may not win out when it comes to your tax time credit.

You need to buy a window or door that meets a .30 or less U-Factor/value and SHDC rating, and you need to have bought it between the years the IRS specifies in the link below. You also need to save your NFRC label from each window you purchase (make sure of this one). If your contractor took it off and threw it away (which far too many do), you can always substitute a manufacturer's certification statement which lists all windows and doors a company has that may qualify. You will also need the original purchase receipt from your dealer (ask your contractor if they purchased the windows or doors for a copy) to be eligible.

Your Energy Tax Credit is worth up to fifteen hundred dollars, which will not exceed thirty percent of your purchase, not including installation.

I am not a Certified Public Accountant (CPA) nor am I a tax professional, so please make sure that you are in contact with them to find out if your energy efficiency purchases qualify for the tax credit.

See the link at the top of this page for more information, and links to the apropriate IRS websites that will give you more information on the tax credit.