Make Your Home Energy Efficient
First, we'll answer the question: Have the 2011 federal tax credits been extended into 2012?
The short answer is, no. There have been no extensions to the federal tax credits.
**The window energy tax credit for 2012 is still awaiting approval.***
New Door & Window Tax Deduction
Credit: 10% of the cost, up to $500, but windows are capped at $200
The new windows must be installed in your principal residence not your second home or vacation cottage.
New windows, doors, or skylights must have a U-factor. The U-factor measures the heat factor through a window and tells you how well the product insulates. They must also have a Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. This tells you how well the window blocks heat from sunlight.
What You Cannot Deduct
If you are going to replace your old windows with the new energy efficient windows you cannot calculate the installation or labor costs as a tax deduction. You also have to be careful if you live in California because some counties are even more particular about which windows qualify for the tax deduction.
National Fenestration Rating Council (NFRC)
This is the only federally recognized organization for determining the energy performance of windows, doors, and skylights. You can Google that and check out their web site. You may think that any product with the ENERGY STAR label automatically qualifies but, this is not true. Check the NFRC web site to confirm qualification before you purchase.
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Homeowners need to save their receipts for their windows purchased along with all window labels and stickers to apply for the tax credit.
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