With the federal income tax filing deadline fast approaching don’t forget to apply for your 2010 Energy Star Tax Credit. For those of you who may not qualify this year, it’s not too early to think about the available 2011 tax credits. Energy efficient home products are a great way to save money – both now and down the road.
To Apply for the 2010 Tax Credit
The 2010 energy tax credit for Window and Doors for existing homes covered 30% of costs up to $1,500 for products placed in service (meaning those products not just purchased, but actually installed and ready for use) in 2010. To apply for this credit you will need to file the 2010 IRS Form 5695 and submit it with your 2010 taxes (filing deadline this year is April 18, 2011). You’ll also need to claim your residential energy tax credit on your 1040 form.
Be sure that you have your receipts and the Manufacturer’s Certification Statement (certifying that the product qualifies for the tax credit) – hang on to these documents.
Looking Ahead to 2011
The energy tax credit was extended into 2011, but at lower levels. The 2011 energy tax credit for doors is now 10% of cost, up to $500 (for windows the cap it $200, on Energy Star products).
With spring coming soon it is the perfect time to replace your doors and windows with qualified energy efficient products. Improvements such as these are estimated to save a household up to one-third on energy costs. The available tax credits are just a little extra incentive.
Further details on qualifying improvements are available at www.energystar.gov.
Click here for information on Energy Star qualified Acclimated Entry Systems.