Tax Credits for Home Improvements

Tax credits are now available for home improvements! Energy Star Logo

Windows, Doors, Skylights

Yes, there is a tax credit for storm windows and doors in 2009 and 2010 that meet this criteria: Storm Window. A storm window that, in combination with the exterior window over which it is installed - (a) Has a U-factor and SHGC of 0.30 or below; and - (b) Meets the rescriptive criteria for such component established by the IECC.

Storm Door. A storm door that, in combination with the exterior door over which it is installed - (a) Has a U-factor and SHGC of 0.30 or below; and - (b) Meets the prescriptive criteria for such component established by the IECC.

Roofing

Yes, "metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements are eligible for the tax credit. The tax credit is for 30% of the cost of roofing materials only, up to $1,500 in 2009 and 2010. Installation or labor costs are not eligible for the 30% tax credit. Roof coatings are NOT eligible for the tax credit.

Criteria:

  • must be "placed in service" from January 1, 2009 through December 31, 2010
  • must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
  • $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
  • must have a Manufacturer Certification Statement to qualify
  • for record keeping, save your receipts and the Manufacturer Certification Statement
  • improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
  • If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
**Please note, not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.