How to Replace Doors With a Tax Credit Benefit
Replace exterior doors in your home and receive a tax credit. This credit is being offered by the U.S. Government to encourage homeowners to invest in energy-saving exterior doors. Energy-efficient products conserve energy and reduce costs to consumers by using the latest energy conservation materials available.
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Instructions
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Purchase green building materials for your home. 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 for new exterior doors, with a dollar value of up to $1,500. For example, a purchase of $6,000 in qualifying doors will receive a maximum of a $1,500 rebate, while a purchase of $300 in qualifying doors would only qualify for $90 in tax credits.
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Browse your replacement exterior door options, but make sure the energy-efficient windows you choose meet the exact standards necessary to qualify for a energy-efficient tax credit.
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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 they may not qualify for an energy-efficient tax credit.
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Keep records of all doors replaced. Save all receipts for your tax records. When completing taxes for 2009, the IRS will have the required paperwork to itemize the cost of energy-efficient replacement doors.
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File for tax rebate when completing tax returns.
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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 actually lower your taxes by $1,500. An expense eligible for a tax deduction of $1,500 will only result in a small portion of the $1,500 to be returned to the consumer.
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
- Photo Credit morguefile.com
