Home Improvement Tax Credits are complicated! That is why Moonworks
created an 11-page article walking you through (and decoding) the fine print, product by product, with: Home Improvement Tax Credits Explained.
Learn the difference between a “tax credit” and “tax deduction.” Additionally, explore tax credits from your national and state government that can save you money on energy-efficient products like windows, doors, roofing, insulation, water heaters, solar energy and more.
Excerpt from the paper:
“While it is important to know how the terms above affect the quality and performance of the building envelope components, the only values pertinent to The Energy Tax Credits are the U-factor and SHGC value. It is estimated that over 30% of the home’s energy escapes through the doors and windows. Upgrading to more energy efficient products can help keep your home cooler in the summer and warmer in winter, while saving you money on your utility bills. Below is a guide which easily explains the criteria each product must meet in order to qualify for The Energy Tax Credits.
Windows and Skylights
- National Tax Credit Amount: 30% of the product’s cost up to $1,500. Labor and installation costs cannot be included. The tax credit cannot be allocated towards a future tax year.
- Criteria for National Tax Credit: The windows must be on an existing primary residence home, as rental property and new construction do not qualify for the credit. The windows must have a U-Factor of 0.30 or less and SHGC of 0.30 or less. Storm windows must comply with IECC default U-factor between it and the window over which it is installed.
- Timeline: The tax credit does not correlate to the date the windows and skylights are purchased, but rather the date they are ‘placed in service’. The windows must be installed between the dates of January 1, 2009 and December 31, 2010.”