Tax Credits

2011 Federal Tax Credits for Consumer Energy Efficiency
On December 17, 2010, President Obama signed the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010". This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums.

Highlights:

• 10% up to $500 for insulation, roofs, and doors.
• Windows capped at $200, but qualification now ENERGY STAR*
• Furnace and boilers capped at $150, and all furnaces and boilers must meet 95 AFUE
• $50 for advanced main air circulating fan
• $300 for air conditioners, water heaters, and biomass stoves
• $500 lifetime limit. If you got over $500 in these tax credits from 2006-2010, you are not eligible for anything more.

Energy efficient windows, doors and skylights can reduce energy bills.

* Please note, not all ENERGY STAR qualified products qualify for a tax credit. 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.

Details of Tax Credit pertaining to Energy efficient windows, doors and skylights:

• Tax Credit: 10% of cost up to $500 or a specific amount from $50 - $300
• Expires: December 31, 2011
• Must be an existing home & your principal residence. New construction and rentals do not qualify.
• Tax Credit does NOT include installation costs.

Tax Form:

• For products "placed in service1" in 2011, you need to file the 2011 IRS Form 5695 and submit it with your 2011 taxes (by April 15, 2012).
• On the 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52.

What you need to submit and save:

• Save your receipts and the Manufacturer's Certification Statement2 for your records.
• Submit Form 5695 with your taxes.

₁  What does "placed in service"mean? The IRS defines "placed in service" as when the property is ready and available for use. It's not when you purchase product, but the day installation is complete, and you are able to use your new product.

₂  What is a Manufacturer's Certification Statement?
A Manufacturer's Certification Statement is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit.
Manufacturers should provide these Certifications on their website. Call the manufacturer, or search their website. EPA does not have copies of the Manufacturer's Certification Statement.
Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

Horner products eligible for the tax credit:

• Kolbe Windows
• Windsor Windows
• Silver Line Windows
• Lockheed Windows
• Masonite Steel & Fiberglass Exterior Doors - Note: Masonite does not have a Manufacturer's Certificate. Save the NFRC Performance Label attached to the door. Click for Energy Star Information from Masonite
• Larson Storm Doors

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