The American Recovery and
Reinvestment Act of 2009

On February 17th, President Obama signed the $789 billion economic stimulus bill that includes tax credit incentives for homeowners who make energy-efficient home improvements. The bill extends eligibility for tax credits through 2010 on energy-efficient improvements—including qualifying windows and doors!

The bill includes the ability for homeowners to receive a tax credit of 30 percent of the cost of qualifying energy-efficient products up to a maximum of $1,500 per household for all improvements made in 2009 and 2010. The requirements to qualify for the new energy tax credit include:

1. Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30.
2. The purchase of the qualified windows must be made during the taxable year for which the credit is being claimed.
3. The credit is only allowed on the price of the qualified windows themselves, not on installation costs, onsite preparation, assembly or sales tax.
4. The tax credit is allowable only for qualified window units placed in service in 2009 and 2010.
5. Homeowners must save their receipts for their windows purchased along with all manufacterer’s certifications for verification and tax recordkeeping.
6. The windows must be installed in the taxpayer's principal residence.
7. This tax credit is capped at a total of $1,500 for the years of 2009 and 2010.
8. Unlike a tax deduction, which only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe.

ENERGY STAR® is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy-efficient products and practices. Check out energystar.gov/taxcredit for more information on the available federal tax credit when you purchase energy-efficient windows and doors.

BSL Direct is not a legal or tax advisor. The above summary is not comprehensive and is not intended to substitute for the advice of a lawyer or professional tax advisor. BSL Direct expressly disclaims any responsibility for determining whether a window purchase will qualify for the energy tax credit or whether a purchaser will receive the energy tax credit. BSL Direct recommends that consumers consult their tax advisor and review IRS guidelines prior to purchasing any window product. For further details on the energy tax credit, check the IRS website.