Energy improvements tax credit question

[happy@home]

We are replacing windows in our house. We can only do one at a time due to time constraints. Will we get the tax credit if we buy all the windows before the end of the year? Or do they have to actually be installed by then? Where can I find more information on the rules in easy to understand language?
Thanks

[Curtis B]

I'm pretty sure you just have to buy them. Ask the place that you will be buying them from. If I remember right there is something like a certificate that you will need for your taxes.

[rambler]

My understanding is the improvents must be in service (installed & doing their thing) by the end of 2010 in order to be valid for the rebate.

As with all such govt spending, there is a lot of room for looking at loopholes, or outright cheating, & I'm sure you'd have no problem finding a retailer that will encourage you to just buy them & see if you can get the rebate.

Added:

Here you go, right from their web site:

http://www.energystar.gov/index.cfm?...edits.tx_index

To qualify for the tax credit, the product needs to be "placed in service" by December 31, 2010. The IRS defines "placed in service" as when the property is ready and available for use. It's not when you purchase product, but the day installation is complete, and you are able to use your new product.



--->Paul

[Katey]

Also, I think for some of these credits, the product has to be installed by a licensed/qualified/professional contractor, not the homeowner.

[happy@home]

I might just call the accountant who does our taxes and see what she says. If we have to have someone else install to get the credit then we'll just keep buying one and installing ourselves one at a time.

[TnAndy]

Originally Posted by Katey

Also, I think for some of these credits, the product has to be installed by a licensed/qualified/professional contractor, not the homeowner.

Nope.....


And there is no certificate.....all you need is the receipt should they ever audit you.....just make SURE it meets the Energy Star requirements, or whatever for the product you're buying ( wood stoves, for example, have to be 85% efficient if I recall )

IF you're doing the work, I'd buy them and file for the credit.

[mountainwmn]

Is the credit on the cost of the windows only, or the installed cost? I can't find that anywhere.

[TnAndy]

From Energystar.gov :


Qualifying products purchased between January 1, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost. Installation is not included; be sure to obtain an itemized invoice from your retailer or installer. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $1,500 during 2009 and 2010.




That means if you can spend a max of $5,000 on the materials to get the 1500 buck credit on your taxes ( 30% of 5,000 )...and this runs out 31 Dec 2010.

The alt energy part continues on thru 2016 and is 30% with NO cap....put in a $12,000 worth of solar panels, and you get $4,000 back on your tax return.

[Pelenaka]

I just ordered my two of my last three replacement windows. The third I'm picking up today as it's in stock. If I was a smarty pants I would have bought more replacement windows the last time there was an energy tax credit even though I wasn't ready to install them. All I did the last time was include receipts when I sent my taxes in.
Self install, of all the home improvements I have done on my old I can honestly say that installing a replacement window has been the easiest. Hardest part is correct measuring. Out of 12 windows only one, a cellar window was off by less than an inch.
Long range plans are to reinstall a 2nd bathroom window that was removed 20 years ago. I wish I had it in the budget to buy & store it now so I can take advantage of the tax credit.

Last year we installed a wood stove. The dealer printed out a form that certified the model was < 88% efficient. That was the only paperwork that we included to apply for the energy tax credit last year. Can't remember if the chimney pipe woud have qualified but it was a mute point since I lost the reciepts, (bought it 2 years prior on sale).

~~ pelenaka ~~
http://thirtyfivebyninety.blogspot.com/