Posted by Empire Siding & Windows in Uncategorized

Homeowners can rejoice if you purchased new doors, windows, or skylights during 2012-2013. They may be, in fact, eligible for a tax credit!  But you’ve got to hurry and order your new ones right away.

The American Taxpayer Relief Act of 2012 included an incentive for homeowners who wanted to save on energy costs, which lasts through the end of 2013.

Photo courtesy of E. Dronkert

How do you qualify for the tax credit?

In order to qualify, you must meet three requirements. The door, window, or skylight must:

• Meet ENERGY STAR program requirements

• Be installed in a taxpayer’s primary residence

• Be installed between January 1, 2012 and December 31, 2013

Save the receipts and the ENERGY STAR performance papers included with your product(s), for your tax documents. Bring them with you when you file for your tax year.

How much is the tax credit for?

You can receive a tax credit equal to 10% of the product cost: up to $200 for eligible windows and skylights, and $500 for eligible doors. This does not include installation costs, which CANNOT be included in your claim.

Photo courtesy of Bryn Pinzgauer

However, homeowners cannot receive more than $500 total for your energy efficiency tax credits. This includes any and all improvements according to IRS Notice Section 25C of the Internal Revenue Code. You also cannot apply for this credit if you already have claimed the credit in a previous taxable year.

This is an overall summary of the tax credit elements related to windows and doors as set forth in the American Taxpayer Relief Act of 2012, which among other things, extends, with modifications, the tax credits in Section 25C of the Internal Revenue Code. This website bears no responsibility for validating or obtaining the tax credit and expressly disclaims any responsibility for determining whether a particular purchase or application qualifies for the tax credit. This article is not intended to provide legal or tax advice. It is recommended that if you have further questions, you should contact a tax advisor or the IRS to determine whether your purchase qualifies for the tax credit.