If you bought and installed impact resistant windows in 2013 then you will be happy to know that you may qualify for some type of tax credit under the American Taxpayer Relief Act, which was passed in 2012 to incentivize homeowners to make their homes more energy efficient. These energy tax extensions cover exterior doors and replacement windows that were installed and purchased on homes that are primary residences between January 1, 2012 and through December 31, 2013 for homeowners that meet certain criteria in this energy tax extension bill.
How it works is if you had bought windows, then you can get up to a $200 tax credit or 10 percent of the purchase price, whichever is lower and if you bought exterior doors, then you could get up to $500 or 10% of the purchase price as a tax credit. Now it is important to note that labor costs such as installation do not apply. The $200 for windows and the $500 for doors are a lifetime limit in total tax credits. This also includes credits that were applied after December 2005 and through to December 31, 2013.
Here is how you know if you qualify for these tax credits if you purchased energy efficient windows and exterior doors:
- Windows and doors much has been purchased between December 31, 2013 and January 1, 2012.
- Must have been in an existing home
- The home they were installed on must be a primary residence
- Energy Star has some guidelines for what they consider to be an appropriate climate zone, you must meet these as well.
If you feel that you have met the guidelines we just described and you want to move forward with getting a tax credit, then here is how to go about doing so:
- As a homeowner, you will need to get a copy of Form 5695 from the Internal Revenue Service and attach this to your yearly federal income tax return for all the improvements that you have made. The IRS will then take a look at how much tax you owe and subtract that amount from that or how much of a tax refund you are getting and add the tax credit amount to that.
- Each window and door will come with an NFRC label; you want to attach this with your receipts to your tax return.
- Now for your own tax records you need to keep the MCS or Manufacturers Certification Statement, you do not need to send this in with your tax return. If you didn’t get the MCS, just ask the dealer or manufacturer to provide this for you. Impact Window manufacturers like PGT Industries will provide the MCS once you provide them with a sales order number.
For more information about this impact resistant windows and doors tax credit you can visit the energy star website. Also, this is for informational purposes only, we are not trying to provide or intend to provide tax advice or legal advice, as we are not tax advisors. For tax related matters, please contact a tax professional.