To view the video click here: Energy Tax Credits Expiring Soon!
The American Recovery and Reinvestment Act of 2009 extended some of the consumer tax incentives through the end of 2010, including the Home Energy Efficiency Improvement Tax Credits. This gives tax payers an opportunity to make their homes more energy efficient while taking advantage of up to $1500 in tax credits.
People are often confused about the differences of a tax deduction and a tax credit. A tax deduction only removes a percentage of the tax owed, while a tax credit actually reduces the tax owed dollar for dollar, making the tax credit far more valuable.
Homeowners who want to take advantage of the tax credit should act fast as it officially ends on December 31st, 2010. There are certain categories of products that are eligible for the credit but not all products within those categories are, so it’s important to verify the requirements before you make your purchase. Also, it’s important to note that the actual credit is 30% of the cost up to $1500 for eligible improvements “placed in service” from January 1st, 2010 through December 31st , 2010. In some cases, you can count installation costs towards your 30% total, in others, it’s only for the actual price of the product. Go to www.energystar.gov for specifics.
So what products are included?
1) Exterior Windows and Doors that meet the requirements of having a U-Factor which is equal to or below 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30 qualify for the credit. Simply put, U Factor is the amount of heat transferred through a material. The lower the U-value, the slower the rate of heat flow and the better the insulating quality of the window. Solar Heat Gain Coefficient (SHGC) is the percentage of heat gained from both direct sunlight and absorbed heat. The smaller the number, the greater the ability to reduce solar heat gain into the home.
For this category, taxpayers replacing their windows during the remainder of 2010 can get up to 30% of the cost in a federal tax credit for the windows (capped at $1,500). This applies only to the actual costs of the windows and doors as installation costs are not eligible in this case.
Simonton Casement Replacement Windows are guaranteed to meet the federal tax credit requirements. But in addition to saving money on your taxes, once the windows have been replaced, you’ll enjoy lower heating and cooling bills, a more comfortable living space, added re-sale value to your home, and low-maintenance vinyl frames.
Simonton Windows has captured the highest rating by consumers in the J.D. Power and Associates 2010 Windows and Patio Doors Satisfaction Study. And, for the third consecutive time, Simonton Windows has ranked highest in the J. D. Power and Associates 2010 Builder and Remodeler Residential Window and Patio Door Satisfaction Study.
H&R Block Tax Incentive
• Simonton Windows® has teamed with H&R Block® to offer up to $150 toward preparation of an individual’s 2010 personal income tax return at participating H&R Block locations.
• Homeowner must purchase 12 or more Simonton windows from select lines that are eligible for the Federal Energy Tax Credit under the American Recovery and Reinvestment Act of 2009.
2) Gas, Oil, an Propane Water Heaters that have an energy factor that is greater than or equal to 0.82 or a thermal efficiency of at least 90%. According to energystar.gov, “The Energy Factor is the measure of overall efficiency for a variety of appliances. For water heaters, the energy factor is based on three factors: 1) the recovery efficiency, or how efficiently the heat from the energy source is transferred to the water; 2) stand-by losses, or the percentage of heat lost per hour from the stored water compared to the content of the water: and 3) cycling losses. Thermal Efficiency is often stated, e.g., ‘this furnace is 90% efficient’, but a more detailed measure of seasonal energy effectiveness is the Annual Fuel Utilization Efficiency (AFUE).
• Noritz offers a wide range of Energy Star-rated residential tankless water heaters that can power from 1 to 4 showers simultaneously, and are so efficient that all of them qualify for the Federal Tax Credit. Take advantage of up to $1500 tax credit by the end of the year.
• Tankless water heaters are more efficient and environmentally-friendly than traditional tank type water heater. Tank water heaters constantly heat and re-heat the stored water even when hot water is not needed, wasting energy and money.
• It’s the Noritz components that set it apart from other brands of tankless water heaters. The NR83-DVC and larger models have commercial-grade heat exchanger inside which is 25% thicker than similar units. That’s why Noritz backs it with industry-leading 12-year warranty.
• If every household in the US replaced their traditional tank type gas water heater with a Noritz tankless water heater, the reduction in CO2 emissions would be like removing 6.7 million from the road.
• This Noritz NR83-DVC is designed to serve the whole house with just this one unit, able to provide unlimited hot water for up to two showers simultaneously.
3) Insulated Garage Doors qualify for the tax credit if they meet the following criteria:
• The installed door must have a U-Factor & Solar Heat Gain Coefficient of 0.30 or lower as tested and certified by the manufacturer.
• The installed door must have a means of controlling air infiltration around the door (e.g., vinyl weather stop on sides and top and a vinyl astragal on the bottom of the door).
Clopay has many doors that fit the criteria.
A well-insulated garage door can reduce energy loss through your garage by up to 71% and keep your garage 10 to 20 degrees warmer on a cold winter day, according to a comparison study conducted by engineers at residential garage door manufacturer Clopay. Those kinds of numbers translate into energy cost savings and a huge improvement in the comfort of your home, especially if you have living space next to the garage or a bedroom or bonus room above it.
Qualifying doors must be installed on an existing residence by December 31, 2010. Visit http://www.clopaydoor.com/green-energy.aspx for a full list of energy tax credit criteria. Professional garage door dealers should provide a manufacturer’s certification statement when the doors are installed.
Homeowners do not need to submit a copy with their taxes, but should keep a copy for their records.
Other Products that are eligible for the tax credit include:
• Certain models of Biomass Stoves
• Some Heating, Ventilating, and Air Conditioning (HVAC) systems
• Many types of Insulation
• Metal and Asphalt Roofing Materials that have a reflective quality