Joe,
I wanted to let you and your readers know something that I believe they will find significant. As you know I sell and install energy efficient vinyl replacement windows. I just received formal notification from the manufacturer of the windows I install that tax credits will be availabe for people who perform energy saving home improvements to their primary residences. These credits will have a limit of 30% of the total cost up to $1500. It will be available in 2009 AND 2010 but they have to be qualifying home improvements. For example, not just any vinyl replacement window will qualify. Windows and doors must have a U-factor of .30 or greater and a Solar Heat Gain Coefficient of .30 or greater. It seems like a lot of technical stuff but generally speaking if the window has a decent Low "E" glass it will make the grade.
Now, here's the important thing. Regardless of WHO installs your windows, if you get the Low "E" option in order to take advantage of the tax credit, be sure to get the "Homeowners Certification " paperwork for your records so that you will have when you fill out next years tax return. In addition to your 2009 1040 you will need to use IRS tax form 5695. What does all of this mean? Precisely this:
I install vinyl replacement windows with qualifying Low "E" glass for $203.95 (in most cases). For each window you have installed at this price you will receive a $61.19 credit toward next years taxes. That's big news. Considering most houses average 16 windows, most homeowners who have qualifying windows installed in their homes will receive a tax credit of about $979.00. That means that if this homeowner is expecting a tax refund in 2009, they would get an additional $979.00 back in their refund check! It also means that your having a window installed that will likely save you a ton of money in energy costs for about $143.00 per window - however you prefer to look at it. Either way, any aspect of this stimulus bill that permits people to keep more of their tax money is OK with me. If anyone has any questions feel free to call our office @ 410-835-8010.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
12 comments:
Joe -
If you love this money saving theory, then please give me $50 and I will give you back $12!
I can do that all day!
You're not getting the picture. If you're in the market for new replacement windows to save energy, this is an excellent opportunity to use some of the money you would otherwise pay to the government to help pay for them. It's not that difficult to understand unless your just trying to be contrary. Then your comment is completely understandable. I've been thinking about replacing my windows for a while now and I appreciate the info right down to the form number I'll need next year for my taxes. Thank you!
Gee, I hate Obama's Stimulus Plan...yea that's it...but what I mean is...I hate all the parts EXCEPT the one's for me...yea that's it. Conservative Putz.
Any part of the "stimulus plan" that allows me to keep more of the money I earn I'm all for. It's when they take my tax dollars and bail out failing companies and funding billions in pork programs that have little chance of putting many people to work yet will end up putting me, my children, and my children's children in debt for a lifetime I have a problem. How do you know those people were comservatives? So does that make you a liberal, socialist putz?
Joe-
Everything you wrote here is correct except for one VERY IMPORTANT THING: The tax credit applies ONLY TO THE MATERIALS AND DOES NOT INCLUDE THE COST OF THE INSTALLATION. So if you're windows actually cost $100 in material, the tax man is going to ask the homeowner for proof of what the window costs...and they will get 30 dollar's credit per window. Not $60.
I have heard this directly from two seperate government sources including someone who works at Energy Star. You are in the same boat as most window dealers who aren't aware of this...but you WILL BE MADE AWARE OF IT when your customers go to file their taxes next year and only get half the credit you said...
I wonder if you had as much heartburn about putting an illegal, senseless and unnecessary war on your kids credit card.
10:15 your absolutely right but we retail the window for that price and most installations are free.
10:17 you're so far off point on this post it's a wonder your comments haven't been booted.
Is it a tax "credit", of the tax owed, or deducted from gross income, thats a BIG differance. I love the people that rave about "write offs" but can't see it's pennies on the dollar.
8:27....No. It is a credit. Not a writeoff. It's huge. If anyone was considering getting new replacement windows this is a great way to get more of what you paid in taxes back and use it to offset the cost of the windows.
I think the IRS is not going to go for the "Free installation" line. Unless you're a window factory the IRS may come after you for this.
We are an authorized retailer with protected territory who pays sales and use taxes like Lowes and Home Depot. If we used that thought process, we wouldn't be able to depreciate trucks used for work at what they cost, we would only be able to use the figure that the dealership paid the manufacturer. I've covered this fully with our accountants. Thank you, though, for your concern.
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