Minneapolis MN Door and Window Replacement or Repair
Save on energy bills and let the light in—repair or replace your windows with new energy efficient ones.
Deadline For Tax Credits For Energy-Saving Upgrades Is Dec. 31
Home Energy Efficiency Tax Credits For 2011 Ending Soon. Time is running out for homeowners to make energy-efficient improvements that qualify for a 2011 tax credit. The credits of up to $500 are set to expire at the end of the year and it’s uncertain if Congress will renew them for 2012. The income tax credits for 2011 differ from those available for 2009 and 2010, according to the Alliance to Save Energy so make sure you do your homework before filing your income taxes.
“The outlook for renewal of federal energy efficiency tax incentives is uncertain at best,” said Alliance President Kateri Callahan in a press release, “so we encourage homeowners to complete those upgrades before the ball drops in Times Square at midnight on New Year’s Eve.” Unless Congress takes action to extend these credits, they are not applicable to improvements made in 2012.
The home improvements that qualify for tax credits fall into a number of categories:
- Exterior windows, skylights and storm windows.
- Insulation, exterior doors, roofs, storm doors and products to seal air leaks such as caulking, weather stripping and foam sealants.
- Highly-efficient heating and cooling equipment, including central air conditioners, heat pumps, furnaces, boilers, water heaters and biomass (e.g. corn) stoves.
Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200.
Must be ENERGY STAR qualified.
You do not have to replace all the windows/doors/skylights in your home to qualify. And it doesn’t need to be a replacement either – installing a new window where there wasn’t one previously (like in an addition) qualifies.
Tax Credit does NOT include installation costs.
Put Energy-Efficient Upgrades in Use by Dec. 31
The tax credit in question applies to improvements “placed in service” through Dec. 31, 2011. The IRS defines “placed in service” as the point when the products or materials are fully installed and are ready for use – not the time of purchase.
So, it’s not enough just to put the order in for a new door or window by Dec. 31 – you’ve got to install it, too. The tax credit applies to how much you paid for the improvement, excluding labor for building components like windows, doors and insulation – but including labor for HVAC components like air conditioners, heat pumps and water heaters.
The improvements must be installed in your principal residence between January 1 and December 31, 2011. Check the Energy Star website to see which improvements qualify for a tax credit and how to apply. In short, you need to file IRS Form 5695 with your 2011 taxes. Make sure you save your receipts and any Manufacturer’s Certification Statement for your records.
With the convenience and ease of using a hometown Minneapolis /St. Paul based handyman, you can cash in on the tax credits by the end of the year.