Word of Caution on Tax Credits

March 11, 2009

Many in the industry are enthusiastically promoting the new tax credits available for energy efficient windows and doors. The following is a word of serious caution. It is undoubtedly a federal crime to make a misrepresentation which forms the basis of a homeowner claim for an unwarranted federal tax credit.  Seller’s should be prepared to document communications as to what product’s do and do not qualify for the tax credit.

Be forewarned that, if challenged, an overly aggressive homeowner may quickly feel compelled to state that he/she made the claim based upon what was represented by the seller of the window or door. We are recommending, especially for sellers of replacement windows, creation of defensive documentation which promotes sales, but minimizes risk of later claims of misrepresentation.

A more detailed discussion of the legal ramifications of the tax credit will appear in the May issue of Window & Door. The article can be read online now.

Paul R. Gary and Matthew A. Johnson are attorneys at the Portland, Ore.-based Gary Law Group. They can be reached at 503/227-8424 and on the Web at www.prgarylaw.com.