There is a new energy tax credit being debated in Congress. Based on what I am reading, homeowners may want to act this year if considering replacing their windows.

The initial language of the bill says homeowners would get 10% or up to a $200 (capped) tax rebate if they purchase windows that are Energy Star rated. There is a second way to increase your rebate. If homeowners purchase replacement windows that meet or exceed the R-5 program, they can get up to 30% or up to $1000 (capped).

The current expiring tax credit allows you a 30% tax credit up to $1500 for this year. For homeowners to qualify for this tax credit, they need to purchase windows with a .30 U value and a .30 Solar Heat Gain Coefficient (SHGC). Most Energy Star rated windows fall into this category but homeowners need to make sure this is what they are purchasing.

Also, with the Energy Tax Credit that is expiring at the end of the year, it is important to note that to get the rebate, the windows must be installed or be ‘in service’ by December 31, 2010. Because many manufacturers have lead times, and many remodeling companies have installation lead times, it’s important to order now. This will ensure homeowners get their windows installed before the end of the year and qualifyfor up to $1500 in tax credit.

Here is a link that shows the some of the draft language of the proposed bill, http://bit.ly/cKpfOH.