M A R K E T OV E RV I E W
Energy Tax Credits tions that were provided under the old guidance
and on Energy Star labels for exterior windows
and skylights in determining whether property
purchased before June 1, 2009, qualifies for the
credit,” the IRS said. The news release, how-
ever, does not constitute a “revised guidance
document,” which was to be released at a later
date, according to the IRS.
Stimulus bill provides incentive for homeowners/remodelers Beginning June 1, 2009, to qualify for the
tax credit, windows (and doors and skylights)
he American Recovery and • The tax credits that were for a specific must have a U-factor and solar heat gain coeffi-
T Reinvestment Act of 2009, the eco-
nomic stimulus bill for short, enacted
dollar amount have been converted to 30 per-
cent of the cost.
cient (SHGC) less than or equal to 0.30. This is
a super-efficient window, and most Energy Star
in February made significant changes to the • The maximum credit has been raised windows will not qualify, according to Energy
energy efficiency tax credits, providing an from $500 to $1,500 total for all improvements Star’s own Web site.
incentive for homeowners who want to save combined for the two-year period (2009-2010). Earlier statements had indicated that
energy and an additional sales opportunity for However, some improvements such as geother- February 17, 2009, the date the bill was signed
remodelers. mal heat pumps, solar water heaters and solar into law, was the effective date for the “30/30”
Home energy audits are an increasingly panels are not subject to the $1,500 maximum. criteria.
popular way that some remodelers are using to • The $200 cap on windows has been
capitalize on the tax credits. They can demon-
strate energy and tax savings achieved by mea-
removed, but the requirements for windows
(after June 1, 2009) has been increased signifi-
The new 30/30 standards
sure such as reducing air leakage by installing cantly. Not all Energy Star qualified windows are both controversial
insulation, replacing inefficient windows and
even upgrading HVAC systems.