The American Taxpayer Relief Act of 2012 was approved in early 2013 to provide federal tax credits to homeowners who have made energy efficient upgrades to their home during 2012 and 2013.
Eligible products must be ENERGY STAR® qualified for the region of the country in which they are installed. Many homeowners today are familiar with the ENERGY STAR® brand name and will be interested in learning more about the potential savings on these products.
TAX CREDIT REQUIREMENTS FOR WINDOWS AND DOORS:
- Products must be ENERGY STAR® qualified for the region of the country in which they are installed.
- Installation of the product must take place in a principle residence.
- The tax credit can be issued for both replacement windows and doors; and for installation of a new window or door into a location where there wasn’t one previously (such as in a home addition).
- The tax credit can apply if homeowners have just a few products replaced in their home to make it more energy efficient. A whole house replacement is not required.
- The tax credit is for the product only and does not include installation costs.
POTENTIAL TAX SAVINGS FOR HOMEOWNERS:
- The tax credit is 10% of the cost of the product, up to $500. However, windows are capped at $200 and exterior doors are capped at $500. Patio doors are considered “exterior doors” so long as the opening allows a person to travel through it immediately into the home.
- This tax credit is retroactive and is good for qualifying purchases from January 1, 2012 through December 31, 2013.
- To apply for the tax credit, a homeowner must have a copy of their product receipt and a Manufacturer’s Certification Statement.