Earn any ENERGY STARŪ Tax Credits with Thermal Industries Windows
November 30, 2006 08:00
As part of the energy bill approved in 2005, homeowners are eligible for a one-time tax credit of up to $500 off their federal tax obligation for retrofitting their homes with energy saving products and appliances. A homeowner can claim up to $200 of the $500 credit for upgrading windows specifically.*
The federal government has announced that ENERGY STARŪ-labeled windows will qualify for the credit. For existing residences, the IRS has provided a "special rule" (on page 7 of the IRS Guidance Notices 2006-26) for claiming the $200 residential efficient window tax credit with ENERGY STARŪ Windows. The new special rule reads as follows:
.03 Special Rule for ENERGY STARŪ Windows and Skylights. Taxpayer may treat an exterior window or skylight that bears an ENERGY STARŪ label and is installed in the region identified on the label as an Eligible Building Envelope Component and may rely on such ENERGY STARŪ label, rather than on a manufacturer's certification statement, in claiming the credit.
The rule is expected to make compliance with the IRS tax credit requirements easier while reducing transaction and recordkeeping burdens to consumers. Rather than obtain a special window Manufacturers' Certification Statement, all parties can now rely on using the established regional ENERGY STARŪ and NFRC window rating labels. And for your convenience, we have prepared a generic Manufacturers' Certification Statement as a download. The ENERGY STARŪ web site has further information on the regional window labels and performance criteria at www.energystar.gov.
Both the ENERGY STARŪ sticker and the NFRC stickers must be removed from the windows by the homeowners and saved. Homeowners are advised to keep the ENERGY STARŪ and NFRC LABELS and purchase receipt as proof for the IRS, in the event they are audited. Refer to your tax preparer for additional tax credit details.
*Tax credits can only be claimed for qualified ENERGY STARŪ products installed during tax years 2006 and 2007.
For further information, view this pdf file.