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Window4U (IL) · **Posted:** Wed Apr 29, 2009 8:01 pm

From Window & Door magazine:
http://www.windowanddoor.com/news-item/ ... ts-for-now

Energy Star Label Qualifies Some Products For Now
Windows and skylights meeting current Energy Star requirements are currently eligible for energy efficient tax credits established unter the American Recovery and Reinvestment Act, according to an April 22 Internal Revenue Service press release. That eligibility, which would mean these products would not have to have a U-factor of less than .30 and a SHGC of less than .30 to qualify, is scheduled to end June 1, or "until guidance is released."

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Door&WindowPlus · **Posted:** Wed Apr 29, 2009 8:57 pm

I talked to one of my customers that use to work for the IRS that recently bought windows from us. He told me that these are only the IRS notes and not guidence and to be careful what I tell my customers. He told me to tell my customers that I am not able to give tax advise and leave it at that. I think this will make the homeowner even more confused.

Door&WindowPlus · **Posted:** Wed Apr 29, 2009 9:12 pm

Window4U (IL) wrote:

From Window & Door magazine:
http://www.windowanddoor.com/news-item/ ... ts-for-now

Energy Star Label Qualifies Some Products For Now
Windows and skylights meeting current Energy Star requirements are currently eligible for energy efficient tax credits established unter the American Recovery and Reinvestment Act, according to an April 22 Internal Revenue Service press release. That eligibility, which would mean these products would not have to have a U-factor of less than .30 and a SHGC of less than .30 to qualify, is scheduled to end June 1, or "until guidance is released."

.

The last part of the article states "Those same sources also offered some caveats. First, the June 1st date could change once the "official guidance is released, and second, the interpretation of what products might qualify for the tax credit."

In other words No one knows for sure. Buyer Beware!!!

anthony · **Posted:** Thu Apr 30, 2009 2:08 am

We do know that <.30 will qualify the product.

segfault · **Joined:** Tue Apr 07, 2009 4:21 pm **Posts:** 7

Arrrrgh... Does this mean that many of the manufacturers who were offering free or reduced-price low-e and argon fill will now drop that offer?

shesallthat · **Joined:** Thu Apr 09, 2009 5:33 pm **Posts:** 6

I'm confused...so does this mean that you might not get a tax credit? Sorry for being so dense but I have 24 windows riding on this.

EcoStar Windows · **Posted:** Fri May 01, 2009 3:05 am

My understanding is that Energystar qualified products are eligible for the 30% tax credit if purchased by June 1, 2009. After that the U-factor and SHGC will have to be below .30. This makes sense to me b/c I had a lot of customers who purchased EnergyStar rated windows after Jan 1, 2009 but before Feb 17, 2009 when Obama signed the Stimulus Bill. Those folks were completely left without any tax credit only b/c they purchased too soon.

segfault · **Joined:** Tue Apr 07, 2009 4:21 pm **Posts:** 7

Skydawggy wrote:

Those folks were completely left without any tax credit only b/c they purchased too soon.

Seems fair enough. People who bought a new car after the recession started but before the stimulus bill was signed don't get to deduct their loan interest, either.

EcoStar Windows · **Posted:** Fri May 01, 2009 3:45 am

I also believe that the statement "until guidance is released" means the Feds are reconsidering the ETC qualifications and are working on some version of EnergyStar that recognises a one size fits all approach to energy efficiency is not the best standard. I think they will go back to a regionally adjusted standard, perhaps with a lower U-factor than what qualified for EnergyStar in the past but, some adjustment in the SHGC depending on location. This makes sense b/c with the current ETC at 30/30 someone in the Northern States is actually reducing their overall energy efficiency by purchasing windows with a .30 SHGC instead of a window much higher.

whaas · **Posted:** Fri May 01, 2009 1:38 pm

[quote="Window4U (IL)"]From Window & Door magazine:
http://www.windowanddoor.com/news-item/ ... ts-for-now

Energy Star Label Qualifies Some Products For Now
Windows and skylights meeting current Energy Star requirements are currently eligible for energy efficient tax credits established unter the American Recovery and Reinvestment Act, according to an April 22 Internal Revenue Service press release. That eligibility, which would mean these products would not have to have a U-factor of less than .30 and a SHGC of less than .30 to qualify, is scheduled to end June 1, or "until guidance is released."

In regards to the SHGC...thats why Champion windows are a joke for the northern states.

I wish I could find a window with a u-factor of 0.25 - 0.30, but then a SHGC of 0.35

windowdude · **Posted:** Tue May 19, 2009 10:28 pm

OK so I'm not an accountant. I've heard things like "the salesman told me that I'm getting $1500 off the price of the job" or "the salesman told me I'm getting $500 back" because of the energy tax credit.

My question is this...how does this "tax credit" work? Do you really get cash back? Or is that $1500 just $1500 of your income that you don't have to pay taxes on? Or does that $1500 go toward paying the taxes that you owe?

For example, if I am due a $1500 refund, will that refund be doubled to $3000? Or if I owe $1500 at the end of the year, will I owe nothing?

Can we make taxes more confusing?

whaas · **Posted:** Wed May 20, 2009 2:52 am

As Zago eluded to its a credit vs. a deduction from your taxable income.

So if you bought $5K in windows and your are due a $1,000 tax refund next year, you will get the $1,000 plus the $1,500 credit (max) for the $5K you spend in windows.

JScott · **Joined:** Wed Jul 27, 2005 1:48 am **Posts:** 313

Skydawggy,

I had a question from a homeowner today. The competing company stated what you indicated above as to the purchase date prior to June 1st.

When I read the requirements I find that it is "placed in service" prior to June 1st as indicated on the EnergyStar.gov site.

The reason that we only had 6 weeks notice is that if windows were just ordered or just installed recently that this time line was to quickly grandfather the homeowners in and give us 6 weeks to receive and install.

If any of you all have any documentation on the "purchase date" verses the "installation date" please let us know. :mrgreen:

EcoStar Windows · **Posted:** Thu May 21, 2009 5:07 am

This is the exact text from http://www.irs.gov/newsroom/article/0,,id=206871,00.html

Quote:

Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit. The IRS will issue guidance that will allow manufacturers to certify that their products meet these new standards.

Until the guidance is released, homeowners generally may continue to rely on manufacturers’ certifications that were provided under the old guidance. For exterior windows and skylights, homeowners may continue to rely on Energy Star labels in determining whether property purchased before June 1, 2009, qualifies for the credit. Manufacturers should not continue to provide certifications for property that fails to meet the new standards.

It states specifically that the property must be "purchased" before June 1. 2009. Emphasis is mine.

JScott · **Joined:** Wed Jul 27, 2005 1:48 am **Posts:** 313

Thanks so much. My client was also able to find clarification that matches your info from the IRS. Have a nice Memorial Day Weekend Skydawggy. :mrgreen:

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