How to Receive a Tax Credit for Skylights

Look out for available tax credits when replacing skylights and exterior windows in your home. A new tax credit is being offered by the U.S. Government to encourage homeowners to invest in energy-saving windows. Energy-efficient products conserve energy and reduce costs to consumers by using the latest energy conservation materials available.

Instructions

1. Purchase new, energy-efficient skylights for your home and receive a tax break. The American Recovery and Reinvestment Act of 2009 has introduced a new energy-efficient window tax credit equaling a maximum of 30 percent of the total cost of new windows, with a dollar value of up to $1,500. For example, a purchase of $9,000 in qualifying windows will receive the maximum $1,500 rebate.

2. Browse skylight options, but make sure the energy-efficient skylights you choose meet the exact standards necessary to qualify for the tax credit.

3. Check for windows with a U-Factor of 0.30 or less and a 0.30 SHGC. Energy Star windows may not qualify for the tax credit. Check specifications carefully, or you may not qualify for an energy-efficient tax credit

4. Keep records of all windows replaced. Save all receipts for your tax records. When completing taxes for 2009, the Inland Revenue Service (IRS) will have the required paperwork to itemize the cost of energy-efficient replacement windows.

5. File for a tax rebate when completing tax returns.

Tips & Warnings

• This new tax credit replaces the previous tax credits allowable as set in the Energy Policy Act of 2005. The old policy limited tax credit to a maximum of $500. The new tax credit limit was increased to $1,500. This is a particularly valuable tax savings. Tax credits are a substantially better benefit than a tax deduction. A tax credit of $1,500, will lower your taxes by $1,500.

• This report is meant to serve as a general guideline. Always consult with a tax professional to receive the most up-to-date tax information.

Resources

• Skylight Information