IRS Issues Guidance on Federal Tax Credit for Efficient Fenestration Products

Tax credit information does not fall directly under NFRC's purview, yet the organization is getting many inquiries from consumers, as well as members, regarding tax credits specified in the American Recovery and Reinvestment Act of 2009, commonly called the stimulus package. It is clear that homeowners can claim a federal tax credit of up to $1,500 for upgrading their primary residences with qualifying energy-efficient appliances and building components, such as exterior windows, doors, and skylights. What has not been clear is what products qualify and what paperwork is needed to prove qualification of the .30/.30 requirements for U-factor and SHGC.

The qualified products must be installed in 2009 or 2010 to be eligible for the tax credit, according to the U.S. Department of Energy (DOE), which has a Web page about the tax breaks. ENERGY STAR® lists a summary of the tax credits and additional information at energystar.gov/taxcredits. For example, it explains that installation costs are not covered by the tax credits for fenestration products.

IRS Provides Clarification
On June 1, the Internal Revenue Service (IRS) issued a guidance document, Notice 2009-53, for the revised energy efficiency tax credits for home improvements. The changes most relevant to windows, doors, and skylights:

• Section 4.01 subparts (3) and (4), on pages 8 and 9, which define storm windows and storm doors as eligible products and provide the criteria for these products.
• Sections 6.04 through 6.06, beginning on page 14, which outline the new requirements for the manufacturer's certification statement. It includes the following statement: “In the case of an exterior window, the manufacturer must retain a record of its National Fenestration Rating Council rating.”

DOE has created an additional label that manufacturers can place on those ENERGY STAR-labeled products that qualify for the tax credit. It distributed a memorandum to ENERGY STAR for Windows, Doors, and Skylights Partners on June 1 with details on the new optional tax credit label, which helps make qualifying products easily identifiable to consumers. The memorandum can be reviewed online.
 
While the NFRC is limited in what we can clarify on these new changes, we continually try to assist our members and consumers hoping to take advantage of these energy-efficient changes. NFRC has created a Web page to serve as a storehouse of information on the tax credit. For further information, please contact Tom Herron, NFRC’s manager of communications and marketing, via e-mail.
 
Please note: This article is not intended to constitute legal or tax advice. More information is available from the Internal Revenue Service (IRS). Individuals should consult their own independent tax advisers.

ALSO IN THIS ISSUE

Back to Home Page >>>

Chair's Message >>>

InnerView >>>

IA Corner >>>

ENERGY STAR® Updates Partner Requirements for Fenestration Manufacturers >>>

NFRC Membership to be Busy in Baltimore >>>

Experts Discuss Complex Fenestration Systems >>>

What Happens in Vegas –
Is NFRC Education! >>>

IRS Issues Guidance on Federal Tax Credit for Efficient Fenestration Products >>>

NFRC Manufacturer Members Invited to Participate in R-5 Windows Program >>>

SPOTLIGHT ON: WINDOW 6/THERM 6 Approval Task Group >>>

SPOTLIGHT ON: Members >>>

NFRC Insider | Vol. 3, Issue 4 - July 2009