The Energy Tax Credit 
On February 17th, President Obama signed the new Stimulus Bill - known as The American Recovery &
Reinvestment Act of 2009. The bill extends and modifies the tax credits for qualifying products as established in
the Energy Tax Policy Act of 2005—including qualifying energy-efficient replacement windows, patio doors and entry
doors!
The approved bill allows homeowners to receive a tax credit of 30% of the amount paid for the product up to a
maximum of $1,500 combined for 2009 and 2010 (including other eligible items listed in the IRS Notice).**
However, these new tax credits come with more stringent energy-efficiency requirements, and not all
ENERGY STAR qualified products qualify for a tax credit. To qualify, windows and
patio doors must provide high levels of energy efficiency in two categories: heat loss, or how well a product
prevents heat from escaping a home or building, and heat gain, or how well a window blocks heat from the sun.
The measurement for heat loss is called U-Factor and the measurement for heat gain is called Solar Heat Gain
Coefficient (SHGC). In both cases, the rating must be 0.30 or lower to qualify for the new tax credit.
According to the new Energy Star guidelines, these new tax
credits are available for a number of products "at the highest efficiency levels, which typically cost much more
than standard products," and "not all ENERGY STAR qualified homes and products qualify for a
tax credit."
1-800-New-Look Installation's is proud to be the only local Michigan replacement window and patio
door installer that has a complete line of energy tax credit qualifying windows and patio doors.
How Does One Qualify for the Tax Credit?
- Windows purchased must be equal to or below a U-Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of
0.30. 1-800-New-Look Installation's Windows and Patio Doors meet these stringent requirements.
- The purchase of qualified windows and patio doors must be made during the taxable year for which the credit
is being claimed.
- The credit is only allowed on the price of the qualified windows and patio doors themselves, not on the
cost of installation labor. 1-800-New-Look Installation allocates 20% of the contract price of 1-800-New-Look
Installation replacement windows and patio doors to installation labor.
- The tax credit is allowable only for qualified window and patio doors placed in service (installed) in 2009
and 2010.
- For record keeping, save your receipts and the Manufacturer Certification Statement.
- Improvements made in 2009 may be claimed on your 2009 taxes (filed by April 15, 2010) — on IRS Tax Form
5695 (2009 version) — which will be available late 2009 or early 2010
** The above is the best available information and is a partial summary of the revisions to the federal tax
code (U.S. Code Title 26, Section 25C) as updated by the American Recovery and Reinvestment Act of 2009. Taxpayers should check with the IRS
regarding updates to the IRS interim guidance in Notice 2006-26 for further details on the tax credit. Other
energy efficient improvements may apply; check the IRS website for more details or updates.
1-800-New-Look bears no responsibility in the validation of obtaining the tax credit. Please consult with a
professional tax advisor or the IRS. 1-800-New-Look expressly disclaims any responsibility for determining
whether a particular product qualifies for the tax credit. Furthermore, 1-800-New-Look does not intend to and
is not providing legal or tax advice and recommends that purchasers consult their own tax advisor to determine
whether the products they purchase qualify for the tax credit.
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