How to qualify for 2011 U.S. energy tax credits


How to qualify for 2011 U.S. energy tax credits

Still kicking yourself for not replacing drafty windows or a worn-out front door in your home in 2010 and taking advantage of the U.S. energy-efficiency tax credit?
Stop worrying about it. You still have another chance to replace old windows or doors, improve your home's energy efficiency and cash in on a new 2011 federal tax credit. 
As part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law Dec. 17, 2010, homeowners can claim an energy-efficiency tax credit from $200 to $500 on certain ENERGY STAR® qualifying windows, skylights and exterior doors installed in 2011. 
"Make 2011 the year you replace drafty or worn out windows or unsightly exterior doors with stylish, more energy-efficient ones," said Pella®Windows & Doors spokesperson Kathy Krafka Harkema. "You'll help improve your home's energy efficiency and could help lower your taxes."
Visit pella.com to explore qualifying window and door styles for your home improvement project. 
Tax credit qualifications
Qualifying U.S. homeowners may claim a tax credit up to 10 percent for:
  • The cost of replacement windows and skylights that meet ENERGY STAR, not to exceed $200, for products installed between Jan. 1 through Dec. 31, 2011.
  • The cost of exterior doors (patio and entry doors) that meet ENERGY STAR, not to exceed $500, for products installed between Jan. 1 through Dec. 31, 2011.
The credit is only allowed on the price of the qualified windows, skylights or doors, not on installation costs, onsite preparation, assembly or sales tax.
If you have previously taken advantage of the U.S. tax credit program, you cannot apply for incentives that exceed the lifetime $500 credit. For instance, if you claimed $300 in federal energy tax credits in 2005, you may claim up to $200 for qualifying purchases in 2011. However, if you claimed the $1,500 U.S. energy tax credit in 2009 or 2010, you have exhausted your lifetime credit and cannot take advantage of the 2011 tax credit. Consult with your tax professional for more details on tax credit requirements and how programs may impact your tax return. 
Reasons to replace
Here are a few telltale signs that your old windows or doors need to be replaced:
  • Air is leaking in and out of your windows or doors, causing hot and cold drafts.
  • There is unsightly fogging between the panes of glass.
  • Your old single-pane windows are not energy-efficient, making your furnace and air conditioner work harder.
  • Your furniture, carpet and/or window treatments are being damaged by the sun's fading rays. 
  • Windows or doors are difficult to open or close. (Note: This is a safety issue and could prevent you from escaping your home during a fire.)
  • Window or doorframes are chipped or deteriorated. 
  • Glass is cracked or broken.
  • Hardware is missing or damaged.
  • There are water stains on or around the window or door. 
  • Cleaning is a major inconvenience.
  • Replacement parts are hard to find or even non-existent.
  • Window or door exteriors require frequent scraping and painting. 
Proper installation a must
Regardless of what type or style of windows or doors you choose, it is essential to install them properly for best performance. If you'd like to talk to a Pella expert about what to expect during your remodeling project, call 866-593-1560 or click here to schedule an in-home consultation.
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