Creative Improvements Company

Save energy and money with green home improvements.

Note: 2011 Federal Tax Credits have changed.

Making your home more energy efficient can help to reduce high energy bills, improve comfort and help to protect the environment. Improving energy efficiency is also an important first step for homeowners interested in green remodeling.

ENERGY STAR® qualified windows, skylights, and exterior doors provide the following:

• Savings on energy bills
• Keeps you home's temperature consistently comfortable
• Protects your furnishings and flooring from fading and discoloring

See www.energystar.gov for more information.

Facts About the 2011 Tax Credits

In the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act" (H.R. 4853) signed into law on December 17, 2010, Congress reduced the federal tax credit for energy-efficient windows, doors, and skylights for 2011 and changed the qualifying criteria.  Below is a summary of the new credit.

Qualifying Products:  All ENERGY STAR® qualified windows, skylights, and exterior doors are eligible.  Products must be installed in a consumer's existing primary residence; new construction is not eligible.

Credit Amount: Consumers can claim a credit of 10% up to $200 of the purchase price of qualifying windows and skylights and 10% up to $500 for qualifying exterior doors. Installation costs are not included.

Lifetime Cap:   There is now a lifetime limit of $500 ($200 for windows/skylights) in total credits that a homeowner can claim from Jan 1, 2006 to Dec. 31, 2011.  It is not on top of the $1,500 limit in 2009-2010.  So if the homeowners have already reached or exceeded the $500 limit, they are no longer eligible to claim the credit in 2011.  The $500 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc), not just windows, doors, and skylights.  If less than $500 has been claimed, the difference up to the $200 cap for windows and skylights and $500 for exterior doors can be claimed.

Duration: The revised tax credit is in effect for products installed in a consumer's primary residence between January 1 and December 31, 2011.

The government is expected to post additional information at www.energystar.gov.  The IRS is expected to post official guidance at www.irs.gov in early 2011.  Circumstances vary widely, so consumers should consult with their tax adviser for further guidance.