Energy Savings with New Replacement Windows – 2010 Tax Credit

Wishing you could have reduced your taxable income on this year’s tax forms? Well, it’s too late. But don’t have the same regret next year! By purchasing new replacement window for your home you can receive a tax credit of up to $1,500. Purchase these replacement windows any time in 2010 and you are eligible to receive the credit on next year’s taxes.

Let’s take a look back at some of the specifics:

The Recovery and Reinvestment Act of 2009 was signed into law by President Obama last year and offers many benefits for increasing the energy efficiency of residential construction materials. One of the Act’s provisions for receiving government money for new windows is that they have to be installed between January 1, 2009 and December 31, 2010.  Homeowners who have put in energy efficient replacement windows can receive a tax credit of 30% of the windows’ cost (not including installation), up to $1500. The credit is only accessible if the windows purchased and installed in a pre-existing home meet the requirements outlined in the Act: U-factor and SHGC (Solar Heat Gain Coefficient) of less than or equal to .30

Not convinced that a $1,500 tax credit for new replacement windows is going to be beneficial? Let’s take a look at the numbers:

1. Energy costs continue to rise and there are no signs slowing down. Replacement windows might be expensive to some, but they will exponentially decrease the amount of money you pay for heating and cooling your home as energy costs rise further.
2. While it differs from region to region, the amount of money saved annually by installing Low-E, Energy Star windows can be substantial. For single-pane windows, it can be between $146 and $465, double pane windows, $27 and $111, and for newly constructed homes, $20 and $85. While this and a $1500 tax credit might not seem like large sums on their own, together they represent significant savings.
3. Replacing the windows in your home will also add curb appeal and increase the value of the property. Some companies offer lifetime transferable warranties so when you sell your home the next owner will be covered by the warranty as well. An added selling point!
4. Ultimately, if $1500 is not enough to entice people to install Low-E windows, it will at least alert them to the fact that such windows exist and that there are many affordable windows in the industry.