Weaker Credit in Latest Tax Legislation

December 14, 2010

Compromise tax legislation extending the Bush tax cuts released last week includes a significantly reduced tax credit for windows, doors and skylights for 2011, according to the Window & Door Manufacturers Association. The draft of the bill the Senate is expected to vote on Wednesday calls for a 10 percent tax credit of up to $200 for Energy Star-qualified windows and skylights and a 10 percent credit of up to $500 for Energy Star-qualified exterior doors. 

"While we and others made convincing jobs arguments for an extension of the 25c tax credits (which include other building products), some Congressional negotiators were opposed to extending any 'stimulus' tax credits enacted as part of the 2009 American Recovery and Reinvestment Act," WDMA officials state. "Several ARRA tax credits were stripped and others in existence prior to ARRA, like 25c, were scaled back to pre-stimulus levels."

WDMA, as well as other industry organizations, are still exploring options for modifying the language prior to final adoption.

“It doesn’t look like the Senate bill has the $1,500 credit we would like, but we are still hopeful things may change when the tax package moves to the House,” says Dave Walker, WDDA vice president. “We felt all along House support is essential to the final outcome,” he adds, noting that WDDA sent out an alert last week, asking members to contact their representatives in the House. “Their sensitivity to this issue is very important to the final outcome.”