Energy Tax Credits On Replacement Windows and Doors Thru 2013: San Diego, LA

Tax Credits On New And Replacement Windows

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Homeowners who installed new or replacement windows in 2012, or who plan to install or
replace energy efficient windows in 2013, can again receive an energy tax credit, using the
IRS Form 5695-The 2012 Residential Energy Credits Form.

The credit includes installation of replacement windows, new home construction windows, entry 
 doors, exterior doors, patio doors and skylights. (Call us at 760-806-6830, and we can assist you with
your window replacement, door installation or energy tax credit questions.)

Passed at the beginning of the new year to avoid tax increases for most Americans, the
American Taxpayer Relief Act of 2012 is bringing back energy efficient tax credits for windows, doors and skylights. Specifically, the bill reinstates the 25c tax credits that expired at the end of 2011 and extends them through the end of 2013.The new bill also extends business credits of up to $2,000 for builders and contractors of new and renovated energy efficient homes through the end of 2013.

Although the windows tax credits cap out at $200, and a maximum deduction of $500 for all windows, doors and skylights, window and door dealers are lobbying to increase the tax credits for American homeowners. (Under the 2009 stimulus bill, homeowners could receive a tax credit of up to $1,500 for energy efficient window replacements and door installations.)

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Kateri Callahan, president of the Alliance to Save Energy, a Capitol Hill based advocacy group.  sees the passage of the tax credits as a good sign for the future. “With the advocacy ‘horsepower’ that energy efficiency policy can generate," she states, "we expect the 113th Congress to be bullish in advancing meaningful national energy efficiency legislation."

The Window and Door Dealers Alliance (WDDA) also sees this as an optimistic sign of more tax credits in the
future. “We welcome the reinstatement of 2011 tax credits in the American Taxpayer Relief Act,"
states Newton Little, a WDDA board member. "Such credits help validate the importance of energy efficient upgrades to the home. We do believe, however, that the $500 maximum credit—and the $200 maximum for
windows—limit the effectiveness of these incentives. We believe larger credits are necessary to truly encourage more homeowners to make the kind of investments
needed to transform our nation’s existing housing stock to make it more efficient and more sustainable.”

All signs point to a strong rebound for home improvement activity in 2013. Tax credits,
along with robust spending in the second half of
2012, suggest that the remodeling recovery is already underway. Annual homeowner improvement spending 
will see accelerating double-digit growth through the third quarter of 2013, according to analysts and
experts. If you cannot find the information about the
reinstatement of the tax credits on the Energy Star
website, the recent changes are reflected in the 2012
Residential Energy Credits Form 5695 from the 
Internal Revenue Service.  Details on the extended homeowner tax credits and builder tax credits  
 are also available from Dsire, a database of renewable and efficiency incentive programs sponsored by the Department of Energy.