Home Owner Tax Credit

All You Need to Know About Federal Tax Credits

What is a homeowner energy tax credit? Let’s start from the beginning. In February 2009, President Barack Obama passed the American Recovery and Reinvestment Tax Act of 2009. Basically, this law supports the Energy Policy Act of 2005 by providing incentives for the buying of energy-friendly doors, windows and lights.

See How You Can Save Money By Buying Shopping Wisely

Let’s face it. Though building a new home can be an exciting experience, you can also feel daunted by the amount of money that goes into constructing your new nest. The shopping can seem unending. But what if you could get tax credits or rebates for what you buy? An impossible dream? Well, not anymore.

Because of the American Recovery and Reinvestment Tax Act of 2009, every time you buy qualifying products (windows, doors and skylights) between January 1, 2009 to December 31, 2010; you are eligible for a tax credit amounting to thirty percent of the product’s original price. All you’re going to need is an itemized invoice from your retailer.

For items purchased on or after June 1, 2009, you will need a 0.30 rating or less for the U-factor and Solar Heat Gain Coefficient (SHGC). Be sure these ratings are certified by National Fenestration Rating Council (NFRC).

You can also opt to use manufacturer’s certification statements for documentation purposes in order to get the tax credit.

However, if you purchased items before June 1, 2009, make sure that they meet the standards of the 2001 Supplement of the 2000 International Energy Conservation Code (IECC) or the 2004 Supplement of the 2003 IECC. You will also need a manufacturer’s certification to qualify for the homeowner energy tax credit.