FEDERAL TAX CREDIT
Home Energy Efficiency Improvement Tax Credits
The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives. A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.
Consumers who purchase and install specific products, such as energy efficient windows, insulation, doors, roofs, and heating and cooling equipment in their primary residence can receive a tax credit for 30% of the cost, up to $1,500 for improvements “placed in service” starting January 1, 2009 through December 31, 2010. Even if you purchase multiple products you can only get a maximum of $1500 over the 2-year period (2009 & 2010). Basically you can spend up to $5000 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 $1500 (30% of $5000=$1500) back as a tax credit. If you get the entire $1500 credit in 2009, then you can't get anything additional in 2010.
Windows must meet the following specifications to be eligible for the energy tax credit:
• U-factor of <=0.30 and SHGC <=0.30
LOCAL REBATES FOR WINDOWS
Richardson, Texas
The City of Richardson has a Home Improvement Incentive Program which offers a rebate in city taxes. See their website for details.
