There has never been a better time to upgrade the windows in your home, thanks to governmental tax credits. Brian Krause is owner of Woodstar Energy, a provider of construction services for home remodeling and renewable energy serving the Northwest Chicago suburbs. He recommends using all the tax credits possible while you can — because they won’t be here for long.
Right now there is a tax credit that was started by Obama’s American Recovery and Re-Investment Act of 2009. Basically what this does, and it runs through the end of 2010 only, is give you a 30$ tax credit off the cost of energy-efficiency upgrades such as windows, up to $1,500.
The key to remember here is that this is a tax credit — not a tax reduction — so you can get up to the full $1,500 back on next year’s tax return. This has really just been a huge measure that the government put forward, recognizing the need for energy-efficient upgrades on people’s homes. In effect, this tax credit gives people a way to get those upgrades done even more cost effectively.
Most people tend to be concerned about how you file the paperwork and what is necessary. At Woodstar Energy, we have all the paperwork put together and all the information you need in order to file for the tax credit. It’s kind of like a rebate but is really a tax credit.
I believe it is kind of cool that the government started doing this. Of course, I did all my windows about four years ago, so I got nothing. But people now are taking advantage of it in a big way. It’s a large discount, and if it is something that you need to do, you might as well get your free money from the government if you can.
One thing to also keep in mind is that the energy-efficient tax credit will apply to other areas of the home as well. So if you have already redone your windows, for example, then this tax credit can apply to doors, wall insulation, insulated siding, HVAC equipment, and hot water heaters. Solar energy systems have their own tax rebate structure, so they will not apply.
