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The American Taxpayer Relief Act of 2012


Federal Tax Credit for Installing

Energy Efficient Windows and Doors


The American Taxpayer Relief Act of 2012 retroactively renews the Residential Energy Efficiency Tax Credit of 2011. Homeowners can claim a Federal tax credit of up to $500 for upgrading their primary residence with energy efficient windows and exterior doors. This Federal Tax Credit means that homeowners can reduce their income tax by up to ten percent of the purchase price (not including installation costs) of qualified products installed between January 1, 2012 and December 31, 2013.

Qualifications

  • Windows must be installed between January 1, 2012 and December 31, 2013.
  • Products must be installed in the homeowner’s primary residence.
  • Products must meet Energy Star published criteria for the Energy Star Climate Zone in which they are installed.

 

 

Lifetime Tax Credit Cap

Currently there is a lifetime limit of $500 ($200 for windows) in total Federal Tax Credits that a homeowner can claim between January 1, 2006 and December 31,2013. This $500 is NOT in addition to the $1500 limit in 2009-2010. If the homeowner has already reached or exceeded the $500 limit, they are no longer eligible for additional Federal Tax Credits. The $500 aggregate lifetime limit includes ALL Federal Tax Credit qualifying products, not just windows and exterior doors. If the homeowner has claimed less than $500 in Federal Tax Credits, they are still eligible to claim the difference up to the $200 limit for windows or the $500 limit for exterior doors.

What do I need to do to get the tax credit?

  • Federal Tax Credit claims should be submitted with your taxes for 2012 or 2013.
  • You will need to file IRS Form 5695 with your taxes. However, tax forms reflecting the tax credit extensions under the American Tax Payer Relief Act of 2012 are yet to be released. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer’s certification. Accountants and tax advisors should also be able to provide more guidance.
  • Homeowners should retain the manufacturer’s NFRC certification label with their records, but are not required to submit it with their tax return. U-Factor and Solar Heat Gain Coefficient (SHGC) ratings can be found on the National Fenestration Rating Council (NFRC) label affixed to every window manufactured by Ideal Window Manufacturing.

Manufacturers’ Statements Download

2013 Ideal Tax Certification
2013 PerfectFit Tax Certification
2012 Ideal Tax Certification
2012 PerfectFit Tax Certification
2012 Professional Tax Certification

For more information

The government is expected to post additional information at www.energystar.gov.
The IRS is expected to post official guidance at www.irs.gov in early 2013.

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