On January 2, 2013, President Obama signed the American Taxpayer Relief Act, which addresses many of the tax issues brought up by Congress at the end of 2012. Part of the act includes the reinstatement of a provision that allows homeowners to claim credits of varying amounts for different energy-efficient home renovations. Below is an excerpt taken from an Inman.com article explaining why you should utilize these credits before they expire:
The federal government wants to encourage homeowners to make their homes as energy efficient as possible. To do so, back in 2005 Congress enacted a tax credit for “nonbusiness energy property.” This was a tax credit (subject to a $500 lifetime cap) for certain energy efficiency improvements to a taxpayer’s existing principal residence. The credit expired at the end of 2011, but was brought back from the dead by the fiscal cliff tax deal back in February. It was made retroactive to apply to 2012 and then expire at the end of 2013. So, if you haven’t used up your lifetime $500 limit already, 2013 could be your last chance to do so.
The Inman.com article adds that a homeowner “may claim a credit of 10 percent of the cost of certain energy-saving property that you added to your main home. This includes the cost of qualified insulation, windows, doors and roofs.” To qualify for the tax credit when you buy window replacements, please refer to the following steps:
Purchase qualifying replacement windows that fulfill the performance requirements of the Energy Star Windows Program Version 5.0. As stated by the Inman.com article, the tax credits are retroactive, which means they apply to windows that you buy before December 31, 2013 or bought after January 1, 2012.
Submit the sales receipt, a copy of the window manufacturer's Certification Statement, and a product performance sheet (e.g. Energy Star Qualification/National Fenestration Rating Council ratings) along with your tax documents. If they do not come with the product, Certification Statements and qualification sheets can usually be downloaded from the window manufacturer's website.
After you have submitted your tax documents, all you have to do next is claim the tax credit during your Federal filing for the 2012 or 2013 tax year, as applicable. If you are wondering which kind of windows Maine homes need to remain well-protected, ask reliable contractors which options would also qualify you for the tax program.
Renowned dealers of energy-efficient Fibrex® products like HomeExperts of Maine, as well as other companies that sell wood, aluminum, or vinyl windows in Maine, can surely answer your questions.
(Article Excerpt and Image from Claim energy efficiency tax credit for homeowners before it’s gone, Inman News, September 13, 2013)