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Tax credits are still available for homeowners through 2021 on energy-efficient upgrades made to their homes. While these credits were expected to expire, the Further Consolidated Appropriations Act 2020 provided an extension into the upcoming year. These tax credits are known as Nonbusiness Energy Property Credit and were enacted to help offset the cost of home improvements designed to reduce a household's overall carbon footprint. The full credits are in effect through the year 2019 while a reduced credit amount will extend until the year 2021.

Equipment and Materials That Qualify for the Nonbusiness Energy Property Tax Credit

To qualify for the tax credit, the materials, and equipment used for the upgrade must meet the requirements and standards set forth by the Department of Energy. Energy Shield Window & Door Company knows these standards and will be able to help you choose qualifying items for your next install. Your upgrades will also have to be determined to be a qualified energy efficiency improvement, which includes new home insulation, upgraded exterior , skylights, and certain types of roofing material.Federal Income Tax Credits for Energy Efficiency in Window Replacement and Doors

Signed in February 2018, the Bipartisan Budget Act of 2018 has renewed several beneficial tax credits for residential energy efficiency that expired in 2016. In fact, retroactive tax credit for non-business energy property is also available on purchases made through December 31, 2017. ENERGY STAR products that are eligible for tax credits have been certified independently to reduce energy consumption, save money and protect the environment.

 

Tax Credits for ENERGY STAR Qualified Windows, Skylights and Doors

The good news for homeowners who purchase new or replacement renewable energy products from Energy Shield Window & Door Company will qualify for tax credits that have been extended through December 31, 2021. Tax credits for commercial buildings and builders were also renewed for 2017. With over 70 categories, ENERGY STAR products provide energy savings of up to 30% for homeowners.

Here is the 2017-2021 tax credit information for energy efficient upgrades:

 

  • Tax Credit - 10% of cost up to $500 for eligible doors and windows & skylights are capped at $200. (not including installation)
    Requirements - To be eligible for the credit, windows, doors, and skylight must:

    • Meet the ENERGY STAR program requirements
    • Be installed in a taxpayer's primary residence
  • Details - To qualify, you do not have to replace all windows, skylights and doors in your home. The tax credit applies to replacements and new additions and features a gradual step down in credit value.
  • Qualifying Residence - Must be an existing home & your primary residence. Rentals and new construction do not apply.

 

How to Claim Your Tax Credits for Qualifying Home Improvements

Tax credits for new and replacement windows provide an incredible incentive to update your home, improve your energy efficiency and improve your home's overall aesthetics. Please contact a tax professional if you have previously claimed an energy efficiency tax credit or visit www.irs.gov to find out your eligibility for this credit. Follow these guidelines to receive your residential energy tax credits:

 

  • Qualify for Tax Credit for ENERGY STAR Qualified Windows, Doors and Skylights within the following timelines:
    • Retroactive tax credit may be applied to windows, doors and skylights installed between December 31, 2016 to December 31, 2017.
    • Current tax credit may be applied to windows, doors and skylights installed between January 1, 2018 to December 31, 2021.
  • Save Your Receipts and the Manufacturer's Certification Statement.
  • Submit IRS Tax Form 5695 with your taxes, click here for more information from ENERGY STAR.

 

Energy Shield Window & Door Company in Arizona

For over 20 years Energy Shield Window & Door Company located in Phoenix, AZ has been manufacturing energy efficient, ENERGY STAR certified vinyl windows, skylights and doors engineered specifically for harsh desert climates with UVA protection and the reduction of sun glare, noise and dust. We proudly serve the greater Phoenix area, Scottsdale, Tempe, Maricopa, Sun City, Glendale, Anthem, Wickenburg and Peoria, Arizona. Contact us today for your free project estimate or give us a call at 623-377-9148 to learn more about huge savings with the residential energy tax credits.

Frequently Asked Questions About Tax Credits and Home Improvements

If you install new windows that are version 6.0 Energy Start qualified, you may be able to take advantage of the credit if you have not reached the maximum allowed in recent years. The credit will be 10% of the cost up to $500 with a cap of $200 for all of your window credits since 2006.

The Nonbusiness Energy Property Credit is a residential credit that has been extended into the year 2020 by previous legislation. It allows up to 10% of residential energy expenses that qualify under the Department of Energy standards. The credit will cap at $500.We typically see customers get $40 - $60 back per window installed.

There are many available rebates for energy-efficient windows to help offset the cost of purchasing and installing them. You can look at rebates from the manufacturer, rebates from your utility company, and city and state incentive programs in your area. You can also check the Energy Star rebates to find possible rebates your improvements may qualify you for.

Qualified products under the energy tax credits include energy-efficient exterior windows, doors, and skylights, certain metal and asphalt roofing materials, and home insulation, as long as they meet the minimum guidelines.

When you replace your current single-pane windows with more energy-efficient ones, you can save anywhere between $100 to $450 per year off of your energy bills. If you upgrade your double-pane windows to energy-efficient ones, you can save between $30 and over $100 per year.

*See Old 2016 Tax Credit Information Below

  • Tax Credit: 10% of cost up to $500 or a specific amount from $50-$300. (Not including installation costs, up to $200 for windows and skylights; up to $500 for doors. Cumulative maximum tax credits for windows, doors, and skylights for all years combined is $500)
  • Expires: December 31, 2016
  • Details: Must be an existing home & your principal residence. New construction and rentals do not apply.
  • Requirements: Must be ENERGY STAR certified.

Tax Credit for ENERGY STAR Qualified Windows, Doors and Skylights

To be eligible for the credit, windows, doors, and skylight must:

  • Meet the ENERGY STAR program requirements
  • Be installed in a taxpayer's primary residence
  • Be installed between January 1, 2012 and December 31, 2016

Homeowners may receive a tax credit equal to 10% of the product cost (installation costs may NOT be included) up to:

  • $200 for eligible windows and skylights
  • $500 for eligible doors

Homeowners may receive no more than $500 total for all energy efficiency tax credits. If you claimed an energy efficiency credit in a previous taxable year, please consult a tax professional or visit www.irs.gov to determine your remaining eligibility for this credit. For more information about this credit or those from previous years, visit www.irs.gov and see the instructions for Form 5695, Residential Energy Credits. Look for ENERGY STAR When Purchasing Products Windows, doors, and skylights that are eligible for a federal tax credit must meet strict criteria. ENERGY STAR makes it easy to find the right products. Look for the ENERGY STAR label to be sure the product you are buying is eligible for the tax credit.

*The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the IRS.

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