Tax Credit Mayhem!

The Federal Tax Credit was deemed as a great way to help stimulate the economy while at the same time help to reduce our dependency on energy by making our homes more energy efficient.   Unfortunately, here in the South it has only confused Remodelers such as myself.  I have found that some Remodelers installing windows are misinformed about the Tax Credit, which will only hurt their reputation when their clients proceed to file for the Tax Credit a year from now.  These Clients will then find out that the windows sold to them do not in fact meet the requirements for the Tax Credit.  

The following depicts how we came across information on the Tax Credit to keep our Clients informed.

A few months ago, we were in the process of ordering windows for an addition that we were constructing.  In the South we like to install Impact Resistant Doors and Windows to protect our homes from wind-borne debris from storms (Hurricanes).   Fortunately, I found out, that the Impact Resistant windows I had ordered for the project did not meet the stringent requirements to take advantage of the Tax Credit.  I contacted my Window Supplier and canceled the order.  I then proceeded to do my own research on the Tax Credit acting responsibly on behalf of our Client.  

I contacted the Window Manufacturer for the main line of windows that we prefer to install and found out that none of their Impact Resistant Windows met the Tax Credit requirements.  The main Tax Credit Requirement, requires the windows to have a U-Factor and a Solar Heat Gain Coefficient (SHGC) of less than or equal to .30.  There are many other requirements which will be discussed below.   I then proceeded to contact other window manufacturers and found out one after another also did not have windows that met both requirements.  Some of the window manufacturers realizing the problem, told me that they were working on products to meet both of these requirements and would be available in several months. 

As I was doing this research, I was contacted by a previous Client that wanted us to give them an estimate on replacing some of their windows.  They told me that they received several estimates in which they were given a quote on a specific window brand in Impact Resistant that met the Tax Credit requirements.  Knowing this window brand very well, I proceeded to tell them that they were misinformed, that these specific windows in fact did not meet the Tax Credit requirements.  At this point, I proceed to get in touch with a contact that I had made who writes for Remodeling Magazine.  I informed her of the situation that is occurring and as a result she wrote an article about it.  http://www.remodeling.hw.net/windows/a-transparency-problem.aspx

A couple of weeks ago, I contacted the Department of Energy to also discuss with them the situation that existed.   As we discussed it, I was told that Energy Star, who helped the gov’t configure the Tax Credit Requirements, changed them temporarily.  Through June 1st, windows that meet the Energy Star criteria for the regions that they are being installed are capable of taking advantage of the Tax Credit.  After June 1st, all windows being installed looking to take advantage of the Tax Credit must revert back to the stringent U-Factor and SHGC requirments of less than or equal to .30.  This information can be found on the Energy Star website.   I have recently discovered very few window manufacturers and suppliers are aware of this small but important timely change. 

We recommend that if you are a Homeowner in the South ordering Impact Resistant Windows and looking to take advantage of the Tax Credit that you should review all of your window paperwork to ensure that the windows meet all the criteria.  Do not necessarily take your Remodelers word that the windows meet all the requirements.  Should you need any help please contact us.

Below are the rest of the Tax Credit Requirements:

• The Tax Credit is available from January 1, 2009 through December 31, 2010.  Items must be installed during this time frame.
• The Tax Credit is available for 30% of the cost of the Windows and Doors up to $1,500.00.  Due to there being other Home Improvements that are available for the Tax Credit, the $1,500 is the max. total amount that can be claimed for all new products in service for 2009 and 2010. Please note: there are several exceptions.
• The Tax Credit is available for the Replacement of Doors & Windows in an existing home and is not available for windows and doors for a new home.
• The Replacement windows and doors must be for your primary residence. 
• It is best to have as much information about y our new doors and windows as possible to show proof of the Improvements. 
  • Write down the name and address of the manufacturerThe Make and Model of the Window or Door
  • Need to have the Manufacturer Certification Statement stating that the Window or Door meets the Energy Star Energy Efficiency Requirements.
  • It is being recommended to save your receipt and Window Stickers (precautionary).

Please visit the Energy Star website for more information: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits   or  www.energystar.com