Over the years, we have been stressing the importance of using Energy Star-certified windows when building or re-modeling a home. Products with the Energy Star label help to lower energy consumption (and the cost associated with it) as well as reduce greenhouse gas emissions as well. But did you know that by installing Energy Star-certified products qualifies you for a pretty nice windows tax credit as well? Read on to find out how you can take advantage of this great opportunity for getting a nice chunk of change back during tax season.
How Much Can I Get Back?
For installing new Energy Star-certified windows or skylights, the federal government is offering a tax credit of 10% of the cost up to 200$. Keep in mind this does not include labor or installation costs; the cost of the windows themselves will be used to determine the credit you will be receiving back. if you pair new windows with other improvements such as upgraded insulation, you can received up to $500 back. Read more on the guidelines here: http://www.energystar.gov/about/federal_tax_credits
How Do I Qualify?
Qualifying for the windows tax credit is quite simple. First, you need to have installed a new, Energy Star-qualified window or skylight between January 1st, 2011 and December 31st, 2016. This applies to a new addition you are building on to your property as well as windows that you are just replacing. This does not mean you need to replace every single window or skylight in your home either.
Not sure if the product is Energy Star qualified? All you need to do is look for the label. This should not be too difficult to do; the labels are generally well publicized on informational material about the windows.
Keep in mind the installation needs to take place to a home that you own and use as your principal residence (the home you live in a majority of the time) in order to get the credit.
How Do I Apply For The Windows Tax Credit?
To apply for the credit, you need to fill out Tax Form 5695 and submit it with this year’s tax return.