Creating energy-efficient homes is the right decision today. One of the first steps is to design energy-smart windows. Although it is a choice that may have higher than desired costs, there is the possibility of accessing a tax credit.
Homeowners can access a full $500 tax credit for energy efficiency improvements related to windows and skylights. The home must be the user’s primary residence to qualify for these benefits.
How does the 2015 New Window Tax Credit Work?
Filing Form 5695 with the federal income tax return is necessary to qualify for a tax credit. That will add credit to the amount of taxes refunded or deducted from the taxes owed.
For the form to have the desired results, it is essential to add it along with the so-called manufacturer’s certification statement. This statement is obtained from the window manufacturer and contains their signature.
They certify that all products and materials used for the installation meet the federal requirements to qualify for the tax credit program. If, after the installation, this certificate is not delivered, it will be the applicant’s responsibility to request it through the manufacturer’s website to be mailed or downloaded.
On the other hand, the amount of credit obtained will depend on the cost of the windows and is not adjusted for the price of labor or installation. From the moment you begin planning for the best ones on the property, you need to contact Mad City Windows to find your installation options.
Renewal of the laws
In 2015 was the renewal of the consolidated appropriations laws due to the expiration of the same in 2014. Although Form 5695 is still in effect, the “Noncommercial Energy Property” or “Part II” and “Energy Efficient Residential Property” or “Part I credit” credits expired on December 31, 2016.
The exception to such rule will be for solar energy properties that qualify under “Part I” and whose expiration date is in 2021. Under “Part I” is a tax credit of 30% of the uncapped expensing on qualified residential fuel cell properties, small wind energy properties, and geothermal heat pumps.
Solar energy properties for new and existing major construction also apply. The only one that does not expire in 2016 will be qualified solar energy systems, solar water, heating, and electrical property.
The expiration date culminated on December 31, 2019, and would begin to decrease the credit to 26% in 2020, 22% by 2021, and that year would expire. To date, it is not known whether the government will decide to extend or renew the 2015 tax credits retroactively.
Should note that only the IRS expenditures on qualified energy efficiency improvements qualify. Before proceeding, it is necessary to access the IRS website and learn about the requirements and the progress tare eligibility for the tax credit.