SUMMARY OF THE ENERGY POLICY ACT:
Other improvements are covered too, such as metal roofing, furnaces, hot water heaters,
cars,solar energy systems, etc. Be sure to save all receipts for tax purposes and any
manufacturer's certificates, labels, etc.
For more information, visit: www.energystar.gov to link to the tax credit page and for other
helpful resources.
Proud Members of:


Product Type:
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Tax Credit Specifications:
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Tax Credit:
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Notes:
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Exterior Windows
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U factor <= 0.30
SHGC <= 0.30
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Up to $200.00 for qualifying windows.
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Not all ENERGY STAR® rated windows will qualify. See www.energystar.gov for more information.
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Skylights
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U factor <= 0.30
SHGC <= 0.30
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Up to $200.00 for qualifying skylights.
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Not all ENERGY STAR® rated windows will qualify. See www.energystar.gov for more information.
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Exterior Doors
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U factor <= 0.30
SHGC <= 0.30
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Up to $500.00 for qualifying exterior doors.
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Not all ENERGY STAR® rated windows will qualify. See www.energystar.gov for more information.
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Storm Doors
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In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC
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Pending Final Specifications as of 01/05/2011
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Not all ENERGY STAR® rated windows will qualify. See www.energystar.gov for more information.
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Insulation
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Pending Final Specifications as of 01/05/2011
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Pending Final Specifications as of 01/05/2011
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For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, insulated siding does not qualify).
Must be expected to last 5 years OR have a 2 year warranty
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What is a tax credit?
A tax credit reduces the amount of income tax you have to pay. While a deduction reduces the
income you have to pay tax on, a tax credit directly reduces the tax itself. This can provide
significant savings to you.
What does the tax credit cover?
It covers purchases made during 2011.
How much is the tax credit for?
The tax credit allows for a total reduction of $500.00.
What improvements are included?
Products that increase your home's energy efficiency are included.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was
signed into law on December 17, 2010. The bill extends (and modifies) the tax credits for
qualifying products as established in the Energy Tax Policy Act of 2005.
Customers who make home improvements can earn tax credits up to $500.00.
Tax credits are available at 10% of the cost, up to $500.00 (for existing homes only) for many
home improvements (more information is below).
Please be aware of the following -
Not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits
are available for a number of products at the highest efficiency levels, which typically cost
much more than standard products. If, for whatever reason, you decide not to purchase a
product covered by the tax credit, you may still consider purchasing an ENERGY STAR
product. ENERGY STAR distinguishes energy efficient products which, although they may
cost more to purchase than standard models, will pay you back in lower energy bills within a
reasonable amount of time, without a tax credit.
Tax Credits for Consumers:
Home Improvements
Tax credits are now available for home improvements:
- Must be "placed in service" from January 1, 2011 through December 31, 2011
must be for taxpayer's principal residence .
- $500.00 is the maximum total amount that can be claimed for all products placed in service
in 2011 for most home improvements, EXCEPT for geothermal heat pumps, solar water
heaters, solar panels, fuel cells, and windmills which are not subject to this cap, and are in
effect through 2016.
- Must have a Manufacturer Certification Statement to qualify.
- For record keeping, save your receipts and the Manufacturer Certification Statement.
- Improvements made in 2011 will be claimed on your 2011 taxes (filed by April 15, 2012)
- You will need to use an IRS Tax Form 5695 to claim the credit.
Copyright © 2005-2011 Lisa Carpenter for Steel City Home Improvement Company, Inc.
Images used with permission.