You may earn energy tax credits with the purchase of many energy saving windows. The most popular products eligible for the energy tax credit are Energy Star® products, including energy-efficient windows. While many Energy Star® products are covered by the window tax credit, some products are not. You should know which energy saving windows you’ll need to purchase in order to earn this energy tax credit.

The Window Tax Credit

In order to get this energy tax credit, you must purchase energy saving windows between January 1, 2009 and December 31, 2010. This energy tax credit is equal to up to 30 percent of the product cost, with a maximum amount of $1,500. Note that the cost of installing your energy-efficient windows isn’t covered.

In order to obtain your tax credit, you’ll need to obtain an itemized receipt from the manufacturer or installer. You must also provide either the unit’s Energy Star® label or manufacturer certification statement. This documentation certifies that the units are in fact energy-efficient windows. If the manufacturer doesn’t provide this to you, you may find this information on the company’s website.

Ratings for Energy-Efficient Windows

According to the U.S. Environmental Protection Agency (EPA), energy saving windows purchased before June 1, 2009 must “meet or exceed the prescriptive criteria established by the 2001 Supplement of the 2000 International Energy Conservation Code (IECC), or the 2004 Supplement of the 2003 IECC for the climate zone in which the product is installed.”

The EPA states that energy-efficient windows purchased after June 1, 2009 “must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less and be certified by the National Fenestration Rating Council (NFRC).” The NFRC is the only organization qualified to determine energy saving performance for:

• Doors
• Skylights
• Windows.

The above are only general guidelines. To find out the specifics of your energy tax credit, consult a tax professional for more information.

Are Costs Worth the Window Tax Credit?

Before you decide to purchase energy saving windows to get this energy tax credit, weigh the potential window tax credit against the costs involved. Remember, replacement energy-efficient windows are eligible for a tax credit of up to $1,500. Replacement windows may cost much more than this, depending on:

• Accompanying materials
• Energy saving window costs
• Installation (NOT covered by the energy tax credit)
• The number of windows.

Yes, installing energy-efficient windows saves money over the long term. In the short term, however, your financial output may not be covered by energy tax credits such as this one.

Applying for the Energy Tax Credit

To get your energy tax credit, you must provide documentation of your energy saving windows. In order to apply for the window tax credit, file the 2009 IRS Form 5685 with your 2009 income taxes. You may also need to provide receipts or other documentation, including manufacturer’s certification statements and Energy Star® labels.