Q: I installed a door last year and am thinking of installing energy-efficient windows in my home this year. What are the tax incentives and rebates for 2016?

energy efficient tax creditsA: You may have recently read that the Residential Efficiency Tax Credit has been extended to include qualifying purchases through December 31, 2016. Massachusetts homeowners who have purchased and installed Energy Star qualified windows or doors have the ability to apply for tax credit for purchases made between January 1, 2015 and December 31, 2016. It may seem a bit confusing, but with the right guide and information there are easy ways to save a substantial amount of money.

Let’s start with windows and doors. In order to be eligible for the credit, windows, doors and skylights must:

  • Meet Energy Star Program Requirements
  • Be installed in a tax payers primary residence
  • Be installed between January 1, 2012 and December 31, 2016

Homeowners may receive a tax credit equal to 10% of the material cost (installation costs MAY NOT be included) up to:

  • $200 for eligible windows and skylights
  • $500 for eligible doors

 Homeowners may receive no more than $500 total for all energy efficiency tax credits. If you claimed an energy efficiency credit in a previous taxable year you should consult a tax professional or visit www.irs.gov  to determine your remaining eligibility for this credit. You can also go to the Energy Star website: https://www.energystar.gov/products/building_products/residential_windows_doors_and_skylights/tax_credit

Purchasing products for your home that meet “Energy Star” requirements isn’t as cut and dry as it may seem. Windows, doors, and skylights that are eligible for a federal tax credit must meet strict criteria. More often than not, if a manufacturer is using an Energy Star rated product they will have a prominently displayed Energy Star label on the product.

What is Energy Star?

Energy Star qualified, windows, doors, and skylights:

As a window dealer we get asked this question many times- How do I choose a window brand? At Coastal Windows & Exteriors we are proud to carry the Soft-Lite Elements Window- the lowest air infiltration window on the market. The Soft-Lite triple pane casement windows have a U-Factor of 0.16, which is close to half the Energy Star requirement in the northern region of 0.27 and was most recently awarded Energy Star Partner of the Year for Sustained Excellence (4 years running).

Though Energy Star does not require any specific technologies, certain product features are common in many certified products. Windows, doors and skylights protect you from the elements just like a winter coat. But like a winter coat, you should pick the windows, doors and skylights that make the most sense for your climate. While some windows, doors and skylights are better at keeping you warm, others excel at keeping you cool.

Performance criteria for windows and skylights are based on ratings certified by the National Fenestration Rating Council (NFRC), and vary for each of the climate zones. If you’ve had a sales advisor in your home before, I’m sure they’ve discussed this with you. A good window or door in Texas or North Carolina is not the same as a good window or door in New England. We have our own special kind of incremental weather to concern ourselves with and this is why the Energy Star program has split the country into regions.

They’ve split up products for the same reason as they’ve split up regions. Each product has specific technology applied to them to provide energy efficiency. It is far more difficult to produce a U-Factor in a skylight as it is in a window. You also might notice that the Northern Region (New England) has, by far, the strictest parameters.

If you have ever had the opportunity to speak to a contractor about replacing your existing skylights or adding new ones, you probably have a good understanding at the seemingly monumental task at hand. In any instance where you and a contractor have agreed on a work commitment, once the skylight is installed, the contractor is now responsible for the lifespan of that particular portion of the roof.

What about roofing?

The tax credit for a roof is 10% of the cost (not including installation costs), up to $500 and is only on reflective or metal roofs which provide the most benefit in hot sunny climates where you are using your air conditioning a lot. If your house is already shaded then a reflective roof may not provide a significant benefit. Brands that we carry that qualify for reflective roofing are the GAF Cool Series and for metal roofing Ideal Roofing shingles. Also to note the tax credit for roofs that have solar panels on them qualify for 30% tax rebates on that particular section of the roof where the solar panels are installed.

What makes a door energy efficient according to the Energy Star program?

 Finding the best and most energy efficient products for you and your family plays an important role when you are deciding whether or not to install a product in your home. These three factors are what you should consider besides the $500 tax rebate:

– Multiple Glass Panes: find doors with triple insulated panes to reduce heat flow.

– Magnetic Strip/Bulb Seal: a tighter seal reduces air leakage around the edges is a key factor.

– Polyurethane Core: look for a door that has fiberglass, wood cladding and steel with fiberglass foam core for a top energy efficient door.

Thank you for reading our column today. We hope you found the information on tax credits helpful as you plan your home improvement purchases this year (and file your returns for last year). As always, if you have any questions related to windows, doors, roofing, siding or baths, please don’t hesitate to contact us at Coastal Windows & Exteriors at 978-304-0495 or by emailing me, Stephanie Vanderbilt at AtHomeWithStephanie@mycoastalwindows.com.