TAX CREDITS FOR ENERGY-EFFICIENT PRODUCTS
The Effects on the Window and Door Industry
The American Recovery and Reinvestment Act (the "Stimulus Bill") provides consumers the opportunity to gain a tax credit by purchasing qualifying, energy-efficient windows and doors for their home.
Tax Credits for Energy-Efficient Windows and Doors
The available tax credit for qualifying windows, doors and skylights was in effect for 2009 and will continue through 2010. Qualifying products must be installed in a primary residence between January 1, 2009, and December 31, 2010. To qualify for the tax credit, windows, doors and skylights must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. ENERGY STAR® qualified and labeled products do not currently qualify for the tax credit unless they attain at least a 0.30 U-Factor and 0.30 SHGC or lower.
The tax credit is 30% of the cost, up to $1500. Please note that installation and labor costs are not eligible for the credit.
The manufacturer must provide the consumer with a compliance statement with the following wording, "the exterior window, skylight, or door has a U-factor and SHGC of 0.30 or below." Additionally, a second statement is required, "Under penalties of perjury, I declare that I have examined this certification statement, and to the best of my knowledge and belief, the facts are true, correct, and complete." The statement must bear the signature of a company official authorized to bind the manufacturer in these matters (officer, executive or owner). The manufacturer must also maintain records of the transaction that facilitate traceability of the National Fenestration Rating Council (NFRC) values and the cost of the fenestration products.
Further information on the tax credit is available on the ENERGY STAR® website. For further assistance, please contact Chuck Anderson, AAMA Codes and Industry Affairs Manager.
DOE Provides Transition Labels
In March 2009, the U.S. Department of Energy (DOE) released its ENERGY STAR® for Windows, Doors and Skylights Revised Draft Criteria and Report. According to the department, this draft takes into consideration comments received, as well as criteria for both the 2009 International Energy Conservation Code (IECC) and the 2009-2010 tax credit in the American Recovery and Reinvestment Act (ARRA) of 2009.
Based upon this draft criteria, the DOE is assisting manufacturers by providing a transition label for use in transitioning to the new ENERGY STAR criteria for qualified doors, windows and skylights. The first phase of which went into effect on January 4, 2010. The DOE is also supplying an optional, supplemental label for ENERGY STAR qualified products that are eligible for the tax credit. Click here for instructions and label templates, as provided by the DOE.
Stimulus Plan
The American Recovery and Reinvestment Act (ARRA) has played a significant role in influencing policy that will in turn affect home owners, builders and the fenestration industry as a whole. The current parameters for energy-efficient windows, doors and skylights mandate that products perform at both a U-factor of ≤0.30 and a SHGC of ≤0.30 to qualify for the available tax credit of 30% of the cost of qualifying items, with a total cap of $1500 per home. This is a dramatic improvement over the prior cap of $500.
These values conflict with ENERGY STAR values and their application to regions in the United States. Together with our members, AAMA has been working to respond to these new criteria and is encouraging Congress and the Department of Energy to reconcile certain product requirements, including SHGC and U-factor to facilitate better understanding and application in the marketplace.
For more information, read about AAMA’s response to proposed ENERGY STAR criteria.
Additional Resources
Federal Tax Credits for Energy Efficiency
ENERGY STAR home page
American Architectural