Is the Tax Credit Deadline Having an Effect?

John G. Swanson
September 7, 2010
THE TALK... | Markets & Trends

Although I tried to keep my mind off work while on vacation last week, I was reminded of the busy fall ahead several times by ads in the newspaper and on TV urging homeowners to get their windows replaced before energy efficiency tax credits expire at the end of the year. "Don't miss out! Windows need to be installed by December 31!"

Ever since the tax credit passed, industry people have projected a bubble of activity toward the end of 2010. The ads reminded me that that period is upon us now, and so I thought I'd ask, are you seeing the bubble yet? That's our poll question of the week.

Of course, I always like to hear more from you. I know I say that every time too. So I'm pleased to report this week we've upgraded our Web site recently to make that easier. With our recent upgrade, you can now submit comments directly on the Talk pages of WindowandDoor.com.

We're excited about this new capacity as we see it enabling the Talk to become the industry forum we first envisioned. As you can see below, readers are now able to comment on what we write, and respond to what other readers say.  We hope we hear from you.

This week, share your thoughts and predictions for the coming months. Will the the expiration of tax credits have a major impact on window and door sales? Will this be good for the industry? Could it be harmful? Submit your comments below, if you prefer, you can still email me directly.
 

Comments

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I think that the tax credits are the best thing ever. I would really like to see the United States implement more types of energy efficient tax credits.

Timothy

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As a homeowner is who currently getting bids on replacing 24 wood windows with vinyl  replacement windows, I have become somewhat frustrated. It's very difficult to get independent information on the type of windows available and the actual quality of the construction of the windows. How do I know which ones will last?

All of the windows that I've seen which meet the tax credit guidelines have all the same general qualities (argon gas, low E coating, etc) so with prices being quoted to me ranging from $7500 to $12,500,  how do I determine the quality of the construction of the actual window? I am not necessarily out looking for the lowest bidder; however, I do want the best quality for the least amount of money. If I could readily determine where the window manufacturers rank with respect to the quality of their windows (who produces high end windows, mid-range windows & low end windows), I would have already made the purchase & be on my way to having more energy efficiency in my home.

Go with window world trust me, best quality regardless of what these scam artists out there are telling you, they just want your money. WW's window is built by AMI 12 largest manufacture in the world. Look them up.

I think the economy this year is really effecting customers. Credit is not available to homeowners and businesses. Prices seem to be dropping because of the competition to stay in business. The EPA lead law is effecting prices and confusing homeowners. I see more owners becoming salesman since the margins aren't there for a salesman to make a living. I hear some people are waiting for Home Star to be available soon. If Home Star passes and is announced before the end of the year window sales will tank because people can wait until next year to buy. Lots of uncertainty.

Survey Results for 09/08/2010:

Is the Tax Credit Deadline Having an Effect?

We don't expect deadline will boost sales.

  

 

71%

 

We're not seeing it yet, but expect to soon.

  

 

12%

 

We're seeing it already, but it probably won't produce more growth.

  

 

10%

 

We're seeing it already, and expect it will accelerate.

  

 

7%

 

 

John also writes:

The fact that large majority of respondents don't predict a boost in sales with the end of the tax credit deadline is a bit of a surprise.  The federal home buyer tax credits that ended this past spring certainly were seen having an impact on the market.

The housing industry enjoyed omewhat stronger sales from the end of 2009 into this spring, but, at least some observers contend, it basically crashed again when the tax credit expired at the end of April.  Personally, I don't think the window and door replacement market is quite as volatile. I do believe, however, that the tax credit wil have an impact on companies active in that sector.  

There are always homeowners out there hemming and hawing about replacing thier windows.  It's something they've been wanting to do for the past few years.  Who knows what makes them decide to pull the trigger, but the deadline is bound to convince a few more of them than usual to do just that.  And that means a few less are going to be ready to do that early next year.  Although we may get Home Star by then, who knows?

 

The tax credit has definitely had a positive impact on sales in 2009 and 2010. We attribute a 15% increase in sales for 2009 and 20% increase in 2010. Most consumers assumed the credit would be continued last year. This year they aren't so sure.

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