As part of the American Recovery and Reinvestment Tax Act of 2009, tax credits are extended and modified for windows, doors and skylights established in the Energy Policy Act of 2005. Some of these energy tax credits are to expire December 31, 2010.

Qualifying products purchased between January 1, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost. Installation is not included; be sure to obtain an itemized invoice from your retailer or installer. The maximum amount of homeowner credit for all improvements is $1,500 during 2009 and 2010.

Products Purchased on or after June 1, 2009

Criteria: Windows, doors, and skylights purchased on or after June 1, 2009 must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less. These ratings must be certified by the National Fenestration Rating Council (NFRC). Look for the NFRC label. NFRC is the only federally recognized organization for determining the energy performance of windows, doors and skylights.

Documentation: Homeowners must obtain a manufacturer certification statement to document window, door, or skylight eligibility for the tax credit. If the retailer or installer cannot provide this document, it may be available on the manufacturer's Web site.

Even if you purchase multiple products you can only get a maximum of $1,500 over the 2-year period (2009 & 2010). Basically you can spend up to $5,000 during this 2 year period on a single or multiple products, for your principal residence that you own and live in, and get 30% or $1,500 (30% of $5,000 = $1,500) back as a tax credit. If you get the entire $1,500 credit in 2009, then you can't get anything additional in 2010.  Whether or not you are getting a refund does not matter. What matters is your "tax liability" - which is the total amount of federal income tax you are responsible for paying.  If you don’t pay any taxes, then you can’t get the credit.

If you have specific questions about the energy credit, please contact a tax consultant.  For more general information on this credit or any Real Estate needs, you can reach the Evelo Team at 317-863-4663 or email team@eveloteam.com.

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