Window Welder Glass Handbook

The Energy Policy Act of 2005 allows consumers to receive a federal tax credit for making energy efficient improvements on their home, including installing ENERGY STAR qualified windows, doors, and skylights.

The following guidance is from the Energy Policy Act of 2005 and accompanying Internal Revenue Service (IRS) Guidance Notices . It is not intended as legal advice, and you should consult a tax professional with specific questions.

Frequently Asked Questions:

Q: What is a tax credit?
A: Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself, or increases the amount of your federal tax refund.

Q: When is the deadline?
A: The tax credit applies to improvements made from January 1, 2006 through December 31, 2007.

Q: How much money will I receive for installing windows, doors, and/or skylights?
A: By installing eligible windows and skylights, you may receive a tax credit of 10% of the cost up to $200. Exterior doors qualify for a tax credit of 10% of the cost up to $500. Installation costs are not included. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $500 during the two-year period of the tax credit.

Q: What windows, doors, and skylights are eligible for the federal tax credit?
A: All ENERGY STAR qualified windows and skylights that are installed in the taxpayer's primary residence and are qualified in the appropriate ENERGY STAR climate zone are eligible to receive a tax credit. Most ENERGY STAR qualified exterior doors installed in the taxpayer's primary residence and qualified in the appropriate climate zone are also eligible to receive a tax credit, with the exception of exterior doors installed in certain parts of California.

Storm windows and storm doors are also eligible for tax credits. See www.energystar.gov/taxcredits for more information on tax credits for storm windows and storm doors.

Q: How do I know which climate zone I live in?
A: The map below shows the ENERGY STAR climate zones.

Example of an ENERGY STAR/NFRC label:

If you live near the border of two or more climate zones, please consult the Climate Zone Finder to help determine your climate zone.

Q: What documentation do I need to provide to receive the tax credit?
A: The IRS has not yet released the forms needed to apply for the tax credit. ENERGY STAR will link to this information as soon as it is available.

For windows and skylights, homeowners should save:
1. Purchase receipts
2. All ENERGY STAR/NFRC labels from the installed windows and/or skylights

For exterior doors, homeowners should save:
1. Purchase receipts
2. All ENERGY STAR/NFRC labels from the installed doors (if available)
3. Manufacturer's Certification Statement or equivalent, which proves the product is eligible

Taxpayers are not required to submit the above documents with their tax returns, but should save them in the event of an audit.