AWDI Promoting $500 Tax Credit for Replacement Windows

November 5, 2008

With the reinstatement of tax credits for energy efficient home improvements for 2009, AWDI LLC, previously known as the Association of Window & Door Installers, is promoting the ability of its certified installers to enable homeowners to get more than the $200 tax credit allowable for energy efficient replacement windows. Because AWDI certified installation processes include insulation around the window, and not just installation of the window itself, homeowners can claim up to the maximum credit of $500 for the replacement project, says John Jervis, executive director of the Juno Beach, Fla.-based company.

AWDI window installation methods feature five distinct steps, two of which primarily involve insulation of the area around the window itself, he explains. AWDI has examined the relative costs of the materials and labor involved in those insulation steps and determined that for a typical job involving 10 replacement windows, those costs can enable homeowners to claim available credits for insulation in addition to the $200 maximum allowed for windows.

The Energy Star label is typically used by homeowners to show that replacement windows qualify as an energy-efficient upgrade for the tax credit, Jervis continues. Through AWDI, its certified installers are able to provide homeowners with the necessary documentation to claim the up to $300 available in additional tax credits for insulation.

AWDI offered this program when the tax credits were in place previously in 2006 and 2007, Jervis reports. The reinstatement of those credits for 2009 with the passage of the Emergency Economic Stabilization Act in October was a "gift to the industry," he says. Given the current market, it's more important than ever for companies to promote and maximize the availabile credits, he also notes. AWDI recommends that dealers match the $500 tax credit to offer a full $1,000 credit/rebate to spur business in today's business environment. 

AWDI began developing its first Installation standards in 1989. Today, Jervis reports about 8,000 window installers are certified by his organization.