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Claiming the Energy Savings Tax Credit

Posted By Jim On 11/09/2006 @ 8:00 am In Taxes | 4 Comments

One of the main reasons why I purchased new windows and sliding glass doors for my home was because I cashed out vacation time from my former job, approximately two and a half weeks worth of pay, which helped soften the blow of a $7,000 purchase. Another reason why I purchased them now was because of the Energy Policy Act of 2005 which provided me the opportunity to claim a tax credit of 10% on the new windows and doors, up to $500. Since the total cost of the project was $7,000, I’ll be able to claim the $500 as long as the windows and doors qualify and the installation cost is under $2,000 (installation costs are not included in the deduction). On the first point, windows and doors must meet 2000 IECC & Amendments [3] to qualify. As for the second, I will have to call up Castle to find out how much was “installation” and how much was for materials.

Now, on point one, as it turns out all residential work in the state of Maryland must meet 2003 IECC & Amendments requirements, which are more stringent than the 2000 IECC & Amendments. So, I should be, as long as Castle Windows is compliant, be covered. However, I don’t want to leave any of this to chance.

To prove compliance for windows, I will need the receipt and either the label from each of the windows or a Manufacturer’s Certification Statement. Since I’ve already removed the labels (with the exception of one, I put it on a sheet of paper for my records), I’ll have to request a Manufacturer’s Certification Statement from Castle Windows. What is this certification statement?

A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

Now, for the sliding doors, it turns out that the certification statement is required so I’ll need this document from Castle Windows no matter what.

So, on my to do list are:

  1. Request a Manufacturer’s Certification Statement indicating that the windows and doors qualify.
  2. Request a receipt with the breakout of the price per window and sliding door plus installation costs, tax, etc.

If all goes according to plan, it’ll be a nice $500 in my pocket.

For more information, check out the Energy Star website [4].


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[3] windows and doors must meet 2000 IECC & Amendments: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#chart

[4] Energy Star website: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

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