You may have heard about Federal tax credits being offered to California homeowners who install new energy efficient windows before the end of 2010. The tax credit applies only to residential window replacement projects, and you must have purchased the windows and had them installed before New Year's Eve. The plan does not apply to rental houses, and you must declare the window project for your principal residence.
Under the incentive program, homeowners will receive up to 30 percent of the total cost of California replacement windows, up to $1,500. Installation costs are not included, so make sure to factor that into your estimates. If you're planning on installing vinyl windows, the tax credit may be the final enticement to get you to do it now.
Installing Vinyl Windows
Not all energy efficient windows on the market meet the ENERGY STAR requirements for the tax credit incentive. You must choose replacement windows with a U-Factor rating of.30 or lower and a Solar Heat Gain Coefficient (SHGC) of.30 or lower. Of course, it's up to you if you choose to install vinyl windows or some other product, as long as the ratings are equal or lower than.30. However, many homeowners prefer the insulating quality of vinyl replacement windows.
U-Factors measure the window's capacity to hold internal heat of the home. The lower the number, the greater the efficiency of the window. SHGC measures the ability of the window to block solar heat from entering your home. The lower the SHGC, the lower the window's heat gain.
To apply for your tax credit, you'll need to send the Manufacturer's Certification Statement that comes along with the qualified window, and your receipt included when you file your Federal tax return. The credit, sad to say, cannot be carried over into 2011, so be sure to take advantage of this offer before it is too late.
