New Tax Credit for Replacement Windows?

ACCORDING TO A POST ON GORELL'S BLOG:

There’s a new energy tax credit being debated in Congress. Based on what we are reading, homeowners may want to act THIS year if you are thinking about replacing windows.

The initial language of the bill says homeowners would get 10% or up to a $200 (capped) tax rebate if they purchase windows that are Energy Star rated. There is a second way to increase the rebate. If homeowners purchase replacement windows that meet or exceed the R-5 program (R-5 table), they can get up to 30% or up to $1000 (capped).

The current expiring tax credit allows homeowners a 30% tax credit up to $1500 for this year. For homeowners to qualify for this tax credit, they need to purchase windows with a .30 U-value and a .30 Solar Heat Gain Coefficient (SHGC). Most, but not all, Energy Star rated windows fall into this category.

Also, with the Energy Tax Credit that is expiring at the end of the year, it is important to note that to get the rebate, the windows must be installed or be “in service” by December 31, 2010. Because many manufacturers have lead times—and many remodeling companies like yours have installation lead times—homeowners are running out of time to order to ensure getting their windows installed before the end of the year and qualifying for the tax credit.

You can view the draft language of the proposed bill at http://tinyurl.com/26ovned.