Nowadays, not only is it important to keep your home energy efficient, but also to pay close attention to the amount of money you can save on your taxes. One simple way of doing this is through the tax deduction for energy efficient windows.
What is the tax deduction for energy efficient windows?
There is a tax deduction for energy efficient windows. This deduction is available for the cost of installing energy efficient windows. The amount of the deduction varies depending on the size of the window, but it is generally at least 50% of the cost of the window.
For example, if you install a window that is six feet wide by eight feet tall and costs $1,000, you can deduct $600 of the cost.
How much can you deduct?
If you want to deduct the cost of energy-efficient windows in your federal tax return, you will need proof of purchase. You can get a receipt or a bill from your home energy company that details the cost of the windows and the rebate you received. The Energy Star website provides information about how to get your tax deduction. nationaltaxreports.com
Generally, you can deduct the cost of energy-efficient windows and doors if you meet all of the following requirements:
The windows or doors are installed in your home
The windows or doors are at least 1/2 inch thick, and have a Category I or II efficiency rating
You use at least 30% of the windows or doors for an energy-related purpose, such as ventilation, light control, privacy, or cooling in your home
Common household appliances and their corresponding tax deductions.
There are a few things you can do to save on your energy bill this year. One is to install energy efficient windows. You can deduct the cost of your windows if they are a qualified energy efficient product. There are a few things you need to know about energy efficient windows before you make your purchase.
First, make sure the product meets all of the qualifications listed in the IRS Tax Bulletin TM-07, “Eligible Energy Conservation Measures.” Qualified windows must be able to protect your home from rain and wind, have an R-value of 9 or more, and meet Federal Energy Regulatory Commission (FERC) standards for air leakage.
Second, be sure to compare prices between different brands and types of windows. It may be worth it to spend a little more money on an energy efficient window because it will save you money in the long run.
Conclusion
If you’re thinking of replacing your old windows in the near future, there are a few things to keep in mind before making a decision. First and foremost, it’s important to consider the tax deduction that can be afforded to you through the government. Secondly, it’s important to find an energy efficient window model that will save you on your utility bills in the long run. And finally, make sure to have an installation specialist come out and give you a free estimate so that you can get started right away!
