A: Under the new law, when taxpayers purchase replacement windows that meet specific energy efficiency requirements, they are eligible for 30% of the amount returned in as a tax credit. This credit is capped at $1,500 for the years of 2009 and 2010.
- Replacement windows purchased must be equal to or below a U Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30. (Note: these are NOT the same factors as Energy Star® qualifications, so homeowners will need to specifically check on the U Factor and SHGC ratings of the windows ordered.)
- The purchase of the qualified replacement windows must be made during the taxable year for which the credit is being claimed.
- The credit is only allowed on the price of the qualified replacement windows themselves, not on installation costs, onsite preparation, assembly or sales tax.
- The tax credit is allowable only for qualified replacement windows placed in service in 2009 and 2010.
A: This is the amount of heat transferred through a material. The lower the U-value, the slower the rate of heat flow and the better the insulating quality of the window.
Q: What is Solar Heat Gain Coefficient (SHGC)?
A: Solar Heat Gain Coefficient (SHGC) is the percentage of heat gained from both direct sunlight and absorbed heat. The smaller the number, the greater the ability to reduce solar heat gain into the home.
A: If you purchase your qualified replacement windows in 2009, you can submit to receive your replacement window tax credit on your 2009 taxes. If you purchase your qualified replacement windows in 2010, you can submit to receive your tax credit on your 2010 taxes.