In a surprise move, the American Taxpayer Relief Act of 2012 was approved in early 2013 with the inclusion of federal tax credits for homeowners who have made energy efficient upgrades to their homes in 2012 and 2013. Similar to the stimulus packages of 2009 and 2010, this new act provides incentives for consumers to add ENERGY STAR® qualified windows and exterior doors to their homes.
The new federal tax credits are significantly lower than the previous tax credits. Now, for 2012 and 2013, homeowners can receive up to 10% of the cost of the ENERGY STAR qualified windows or doors, up to $500. And, for windows, this caps out at $200. This is significantly less than the original stimulus package when homeowners could receive up to $1,500 on their window and door purchases.
The tax credit is retroactive to purchases made starting January 1, 2012 and expires on December 31, 2013. As in the past, installation of the product(s) must take place in the homeowner’s principle residence and the credit does not include installation costs. Simonton Windows proudly offers a selection of vinyl replacement windows that are energy efficient and qualify for the tax credit.
Products must be ENERGY STAR qualified for the region they are installed. New for this tax credit is the stipulation that the entire home does not have to have all of its windows and/or doors replaced. The tax credit can apply to having just a few products replaced in the home to make it more energy efficient. In addition, the tax credit can be issued for both replacement windows and doors and for installation of a new location window or door in an area of the home where there previously wasn’t an opening (such as in a home addition or renovation of existing home space).
To apply for the credit, a homeowner must have a copy of their original product receipt and a Manufacturer’s Certification Statement. Visit www.energystar.gov for more details.