Guidance Issued on New Tax Credit Rules

January 3, 2011
Government

The Window & Door Dealers Alliance and Window & Door Manufacturers Association have each issued guidance on the new 2011 tax credits for energy efficient windows, doors and skylights enacted as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Signed into law December 17, 2010, the legislation establishes a $200 maximum tax credit for windows and skylights and a $500 maximum credit for exterior doors installed between January 1 and December 31, 2011.  According to the WDDA document, the new law changes the criteria from the .30/.30 levels established for the 2009/2010 energy efficienciet tax credits to products meeting the current Energy Star ratings. 

Also of note, is a new lifetime limit of $500 in credits that a homeowner can claim from January 1, 2006 to December 31, 2011. WDMA's fact sheet notes that this $500 limit is not on top of the $1,500 limit in 2009-2010. If a homeowner has already reached or exceeded the $500 limit, they are no longer eligible to claim another credit in 2011. The $500 limit is also not just for windows, doors and skylights, but for any combination of all tax credit qualifying products, such as HVAC equipment, insulation or roofing.  

Both WDDA and WDMA note that additional information is likely to be provided by the government soon at www.energystar.gov and www.irs.gov.