Additional Tax Credit Information and Helpful Tools

For the calendar year of 2012, the U.S. Government has discontinued their offers of federal tax rebates on energy-efficient exterior home remodeling products.  However, if during 2010 or 2011 you purchased and had installed energy-efficient remodeling products that qualify, information on those programs and how to redeem the credit can be found below.

What PHRG Products Are Approved For the Energy Tax Credit?

Please contact us for information on all available products associated with the energy tax credit.

How The Tax Credits Work

1. The Act covers energy saving home improvements. This is not to be confused with Energy Star rated products. To qualify for the Tax Credit, products must meet more stringent requirements than the Department of Energy has mandated for the ENERGY STAR Program.  Windows and Doors, for example, must have a U-factor and Solar Heat Gain Coefficient (SHGC) less than or equal to 0.30. The lower the U-Value the better insulation a window provides. Please be very careful with this condition, because contrary to what many “experts” have stated, this does not include everything with an Energy Star label on it.

2. 2010 Energy Tax Credit: Qualifying home improvements must be installed and ready for use between January 1, 2009 and December 31, 2010 at the homeowner’s principle place of residence. In the event a purchase was made PRIOR to the law taking effect, the homeowner would still benefit as long as the products are installed and payment is made in 2009. The $1,500 tax credit is a one-time only credit. In other words, if a homeowner purchased windows qualifying for the full $1,500 credit in 2009 and then purchased a roof that also qualified for a $1,500 credit in 2010, he or she would be eligible to claim only a single credit of $1,500.

However, a number of energy-efficient home improvement products, such as certain solar-related products, are not subject to this $1500 tax credit, and thus can be used in conjunction with other products. For example, if a homeowner purchased windows qualifying for the full $1,500 credit in 2009 and then also purchased a thermal solar water heating system in 2009 that qualified for its own 30% tax credit, he or she would be eligible to claim both tax credits.

3. 2011 Energy Tax Credit: Qualifying home improvements must be installed and ready for use between January 1, 2011 and December 31, 2011 at the homeowner’s principle place of residence. In the event a purchase was made PRIOR to the law taking effect, the homeowner would still benefit as long as the products are installed and payment is made in 2010. The 10% tax credit is a one-time only credit. In other words, if a homeowner purchased windows qualifying for the full credit in 2010 and then purchased a roof that also qualified for a tax credit in 2011, he or she would be eligible to claim only a single credit of 30% off from 2010.

However, a number of energy-efficient home improvement products, such as certain solar-related products, are not subject to this federal tax credit, and thus can be used in conjunction with other products. For example, if a homeowner purchased windows qualifying for the full 10% credit in 2011 and then also purchased a thermal solar water heating system in 2010 that qualified for its own 30% tax credit, he or she would be eligible to claim both tax credits.

4. Lifetime Cap: There is now a lifetime limit of $500 ($200 for windows/skylights) in total credits that a homeowner can claim from Jan 1, 2006 to Dec. 31, 2011. It is not on top of the $1,500 limit in 2009-2010. So if they have already reached or exceeded the $500 limit, they are no longer eligible to claim the credit in 2011. The $500 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc), not just windows, doors and skylights. If they have claimed less than $500, they can claim the difference up to the $200 cap for windows and skylights and $500 for exterior doors.

How to Claim 2010 and 2011 Tax Credits

Homeowners seeking to claim one or more of the available tax credits should complete IRS Form 5695 for the tax year in which the improvement is placed into service. For record keeping purposes, it is advisable for homeowners to retain the work orders or receipts for the qualifying improvement. Taxpayers should also keep a copy of the Manufacturer Certification statement (a signed statement from the manufacturer certifying the product qualifies for the Energy Tax Credit) for their records, although the statement does not have to be submitted with the taxpayer’s tax return.

* If your work order does not break down the cost of product vs. labor, use the following chart to determine the eligible amount for the material cost:

Product Materials

Windows 83%

Doors 83%

Siding 19% (The Act only covers Insulation Cost, not the Siding itself)

eShield 80%