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.
In 1992 the US Environmental Protection Agency (EPA) introduced ENERGY STAR as a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse gasemissions.
On December 17, 2010, President Barack Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Under this law, the tax credit for energy-efficient windows, doors, and skylights has been extended through 2011, but with significant modifications. The 2011 tax credit stipulates the following:
- Exterior windows, skylights, and exterior doors must meet ENERGY STAR program requirements.
- Homeowners may claim 10% of product cost (installation costs may NOT be claimed).
- For the taxable years of 2006-2011, homeowners may claim no more than
Products must be installed in a taxpayer’s primary residence by December 31, 2011.
- $200 for windows and skylights (doors are excluded from this cap) and
- $500 total for all energy efficiency credits.
The Internal Revenue Service (IRS) decides what documentation is necessary for tax credits, but work on 2011 tax documents and policy will not begin until the current tax year ends in April. Until IRS issues a guidance document for this tax credit, homeowners should save all available documentation, such as purchase receipts, ENERGY STAR labels, and manufacturers’ certification statements.
What is included in the Tax Credit?
10% of cost up to $500 or a specific amount from $50 - $300
December 31, 2011
Must be an existing home & your principal residence.
*New construction and rentals do not qualify.
Windows, Doors, Skylights:
Energy efficient windows, doors and skylights can reduce energy bills.
Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.
Requirements - Tax Credit does NOT include installation costs.