Wall Street Bail Out Bill Revives Window Tax Credit

October 15, 2008

The Emergency Economic Stabilization Act of 2008, the $700 billion bail-out bill passed earlier this month, includes provisions bringing back the 2006 and 2007 tax credits for energy efficient improvements in 2009. Additionally, the new law extends the deductions builders can take for improvements in new homes through 2009 and the deduction for energy-efficient improvements to commercial buildings through 2013.

The homeowner tax incentives once again include a credit of up to $200 for Energy Star qualified windows and skylights and and up to $500 for exterior doors. Products are also elibigle if they meet certain requirements of the International Energy Conservation Code. Improvements made in 2008 are not eligible.

The one-year extension of the credit for builders covers home that achieve a 30 percent or 50 percent reduction in heating and cooling energy consumption relative to a comparable dwelling. The credit equals $1,000 for homes meeting a 30 percent efficiency standard and $2,000 for homes meeting a 50 percent standard.

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. Under the new law, tax deductions are now available for systems “placed in service” from January 1, 2006 through December 31, 2013.

More information on the deductions is available on the Energy Star Web site.