Tax Credit's for Replacement Windows, Doors, Siding & Roofing
Certain Replacement Windows, Entry Doors, Patio Doors, Garage Doors, Siding and Roofing are eligible for a tax credit when installed in your home. Please read the following guide to learn more about the tax credits.
Tax Credit Update (1/1/11)
Unfortunately, the tax credit expired as of December 31st, 2010. All projects needed to be installed at that time in order to be eligible for the credit. However, if you missed out, a reduced credit is still available. You can earn 10% back up to $200 for qualifying windows and up to $500 for qualifying doors. All the eligibility requirements and procedures listed below still apply in order to claim the credit. In addition, if you took advantage of the $1500 credit when it was available, then you are not eligible to claim the new credit. Please contact us with any questions.
About the Tax Credit
The tax credit is for 30% of the cost of qualifying products, up to $1,500. Labor costs are not eligible for the tax credit. In other words, any project with material costs of $5,000 or more will result in a credit of $1,500. If the total cost of the project is $5,000 with labor composing $500 of that cost, the tax credit will be 30% of $4,500 or $1,350.
The credit is available on projects completed before December 31st, 2010. You cannot claim more than $1,500 even if you install more than $5,000 of qualifying products in separate years.
The credit applies to the homeowner’s principal residence only.
A tax credit is a dollar-for-dollar reduction subtracted from your tax liability. Therefore, $1,500 can be subtracted directly from the amount of tax that is owed, or added to a tax refund.
The credit should be claimed for the year the products were installed. Products installed in 2010 should be listed on tax returns for 2010.
You must file on IRS form 1040. You cannot claim the credit if you are filing a 1040EZ tax form.
How to Claim the Tax Credit
We recommend that you consult with your accountant about claiming the credits. You will need to complete IRS form 5695. You should also retain the following information for your records:
- A copy of your contract with King Remodeling.
- NFRC/Energy Star Labels that come attached to the products
- A copy of the Manufacturer’s Certification Statement pertaining to the American Recovery and Reinvestment Act of 2009.
