As most window industry professionals know, attempts to extend the 2010 $1,500 Tax Credit on energy–efficient windows, doors, insulation and other home-improvements did not succeed. The legislation passed by Congress and signed by the president last week does include a tax credit, but only up to $200 for ENERGY STAR qualified windows and skylights and up to $500 for ENERGY STAR qualified doors for 2011. This is a far cry from the expiring $1,500 tax credit that is such a good thing in so many ways for consumers and the country. The fight for higher tax credits for replacement windows and doors isn’t over, however. Remodeling and window industry groups are continuing to press for new incentives in 2011. Rich Walker of the American Architectural Manufacturers Association (AAMA) sums up the situation nicely:

"Homeowners who are currently caught in the crossfire of depreciated home values and a lagging economy will be unable to make these important energy-saving purchases without the assistance of any substantive incentive …” To be sure, consumers have other things on their minds at this time of the year, but we all need to be on board with continuing efforts for new tax credit legislation in 2011. Anyone interested in voicing an opinion about re-establishing a stronger tax credit for retrofit windows and doors should contact their federal legislators.

An easy way to begin the process of contacting representatives in Washington is to visit www.house.gov and enter your zip code in the “Find Your Representative” search form in the upper left corner of the page, or to visit www.senate.gov and select your state from the drop-down menu in the upper right corner of the page.

As usual, as we approach the end of another year, you think back on all that happened this year, and look forward to what you expect to happen in the coming year. For the replacement window industry, 2010 was a milestone of a year. There was unquestionably more government involvement in our industry than ever before. Since the replacement window industry began in the mid sixties, when I started in the industry, I can say that with total confidence.

It was a very difficult year, but ending on a very strong note, with a big part of the strong finish due to the expiring Energy Tax Credit 25c legislation. Interestingly, the replacement window industry actually started into this recession late in 2006 well before most businesses saw any problems at all. Business got steadily more challenging through all of 2008, and has been very slowly recovering from that bottom.

Next year should be much better for everyone, but especially for the home improvement and replacement window industry. The economy is recovering. The talk now is that retail sales this Christmas season, if not record breaking, will at least be excellent and the best we’ve seen for many years. This fact alone says average consumers are again spending money.

Now apply that information to housing. Prices have bottomed but the market hasn’t loosened up at all. Houses just are not selling at normal rates so most people are staying put, and many will likely decide to improve what they have rather than try to buy something new. The best part of this is highly efficient replacement windows are a great investment. They make you more comfortable in your home. They save you money on your energy bills that translates into the country saving energy, huge quantities of energy.

High quality energy efficient replacement windows improve the appearance of your home and have been proven to be one of the best home improvement projects to recoup your investment in a short period of time. That really means you are paying for replacement windows whether or not you buy them with your higher energy bills. Reduce your bills, save energy, improve the value of your home, feel more comfortable in your home year round, make your home more beautiful, and help the country significantly reduce the need for foreign energy – WOW – a win – win – win – win – win – win – win investment.

As far as what 2011 will be like, any year that starts out January first as 1111, has to be a winner.

There’s an excellent article – called “Energy Wasters in Your Home” – that just appeared on Yahoo Finance on the Internet the other day. It was written by ENERGY STAR spokesperson Maria Vargas, who provides some very interesting data as well as excellent tips on how to reduce household energy consumption. She states that the average American household spends $2,200 on energy. That’s a lot of money!

Her good news, however, is that this amount can be cut by a third by doing some simple energy-saving things in the home. Like changing or cleaning furnace air filters, lowering the temperature on the water heater, using a programmable thermostat and switching to those new compact fluorescent light bulbs. There are a lot more tips in the article. Definitely worth taking a few minutes to read.

One thing the writer points out that many may find surprising is that heating and cooling costs typically account for 46% of a home’s electric bill. Heating and cooling are obviously areas that need to be addressed – and she does so in the article. The one thing she might have mentioned, however, is that one of the biggest “energy wasters” in the home happens to be inefficient windows. Nothing contributes more to that furnace running so often in cold weather than inefficient windows. The same goes for the AC running constantly in warm weather.

The $1,500 tax credit for purchasing highly efficient windows is about to end, but energy savings certainly won’t -- if homeowners take action and do something about their windows that are the cause for those high heating and cooling bills.

To see the article, “Energy Wasters in Your Home,” visit http://finance.yahoo.com/family-home/article/111560/energy-wasters-in-your-home

How much does $189 cost me?

Every once in awhile I see those advertisements in the newspaper offering windows for $189. I have even seen some other price point window companies marketing windows for as low as $159!

But with those prices, as a homeowner, what am I getting? With my home being the most expensive investment that I am ever going to make, is $189 a good deal? Is it a good investment for my most expensive asset? What type of service can I expect? What about the warranty?

These are questions I ask myself when I see these advertisements. So what are the answers? Unfortunately, the answer starts with ‘it depends on what you want.’

First, those low cost windows are definitely available. And if that is what you want, the company advertising the prices is legally required to provide them to you. But I found that if you have an actual presentation, you end up paying more than the low advertised price of the window. Things like exterior and interior trim, coil, stops, high-performance glass all significantly add to the cost of the project.

As far as service and warranty, there is no all-encompassing answer that will be good for every low-cost provider. But from the documentation that I was presented with, to get service or a warranty fulfilled, don’t expect to just make a phone call and expect things to be handled.

So what should we as homeowners look for when choosing a home improvement company to do a project? Here is quick list:

1. References - 3 good ones and 3 bad ones - it’s easy to get the good references, but I want to know what happened when things didn’t go as planned, and this is why I ask for the bad references - I will take both the good references and the ‘not so good’ references with a grain of salt - but this will give me an idea of how good the company’s service is.

2. Better Business Bureau Rating - This is very simple to find, just go to BBB.org and follow the instructions - if the home improvement company isn’t part of the BBB, find out why.

3. How long has the company been in business? It’s ideal if the company you are going to do business with is part of your community. It’s also not necessary to choose the company that has been in business the longest but you definitely want a company with a successful track record

4. What products are your prospective home improvement company using - which manufacturers? Many times you can look up the manufacturers’ products on line and get a good education about the various options before you meet with prospective home improvement companies. You can also check out the manufacturers on various home improvement forums

5. Use the internet to your advantage - besides checking out forums, check out Angie’s List, Service Magic and the internet Mommy Groups in your area, and e-mail manufacturers whose products you are considering using - all of these sites will be extremely helpful in guiding you.

The bottom line is this: You need to feel comfortable with who you are going to trust your home with. You don’t necessarily want to short cut the process by going with the least expensive option available. Remember, your home is typically your most expensive asset. You want to make sure you are investing in the right home improvement company so your home investment will continue to grow.

What characteristics and practices separate good contractors from the bad? The majority of home improvement projects include a fair amount of costs and stress, so knowing that you have the right contractor can make all the difference. While it may be true that anyone with tools and a pick-up truck can become a contractor, most states require contractors to be licensed. Don’t be afraid to do some research prior to hiring a contractor for a project. Check on references from previous customers and ask to see completed projects in person if possible. Consider collecting three bids on a potential project to determine if the estimates received are reasonable. While it may require a little bit of work up front, getting the right contractor can be easier then you think.

Points to consider when talking with a potential contractor to ensure you receive the care and service your home improvement project requires:

1. Make sure the contractor is licensed by the state, ask for references from past customers and ask for examples of past projects in the area.
2. Collect three bids on the project and beware of, “To Good To Be True”, low bids.
3. Check on whether or not an architect is needed as part of the planning/approval process for the home improvement work to be performed.
4. Consider having any contracts or agreements with the contractor reviewed by a real estate lawyer or independent third party.
5. Ensure subcontractors are paid upon completion of their work to protect against liens or other legal action that may affect the home.
6. Set up a reasonable payment schedule for the project with the contractor. This includes agreeing upon an initial down-payment for the project.
7. Establish a set work schedule with the contractor to ensure timely completion of the project.
8. Make sure the contractor is willing and able to obtain all permits and inspections in order to comply with local building codes and city ordinances.
9. Always maintain a good working relationship with the contractor, but keep it professional.

For additional tips and information please visit the following article from Yahoo Finance, "10 Things Your Contractor Won’t Tell You."

Apparently the Window Tax Credit Extension is in danger of being cut out of the tax legislation currently being negotiated in Washington. Sources monitoring the negotiations on the impending Middle Class Tax Cut say that the window tax credit extension and modification amendment introduced by Max Baucus are in danger of being excluded from final legislation. The window tax credit extension is a good thing for America in many ways. First, it helps all those Americans who want and need energy-efficient improvements, especially windows, for their homes. Tens of thousands of Americans are missing out on the current $1,500 tax credit program because they didn't realize they needed to order windows months in advance to have them made and installed in time. Manufacturers have already been working at full capacity for several months to meet the demand caused by the December 31 deadline, and contractors and window dealers have a backlog of installation projects.

Second, it's good for the economy when Americans spend money. Who can argue that it's a great thing when American plants are producing products, plus it means Americans are going back to work.

Third, having energy-efficient improvements made really does help America in terms of families spending less on home energy -- and America depending less on foreign oil.

Anyone interested in telling our legislators NOT to remove the window tax credit extension and modification amendment from the legislation being negotiated should contact their representatives as soon as possible. Tell them to insist that the 25c window tax credit be extended. Contact information for all members of the 111th Congress is available by going to the U. S. Senate website at http://www.senate.gov/general/contact_information/senators_cfm.cfm

Most homeowners know that the Federal Energy Tax Credit—which includes up to a $1,500 tax credit for energy-efficient windows, doors and insulation—expires December 31. Interestingly, there's a possibility that a variation of the program will be available in 2011.

The President and the Republicans have arrived at a compromise involving the expiring Bush Tax cuts. The proposed legislation is quite comprehensive (and long), but it does include tax credits for energy-efficient home upgrades. This is part of a bill proposed by Senate Finance Committee Chairman Max Baucus of Montana.

The compromise bill, however, is really just a starting point. Because it covers such a wide range of issues, there is no guarantee that the final bill, if and when passed by Congress, will include the provisions to extend the energy tax credit another year.

The current program has helped the window and door industry see a significant increase in business this quarter, helping to improve the economy and contributing to job growth. That’s why many of us in the window and door industry—from the Window and Door Dealers Alliance to the Window and Door Manufacturers Association—continue to push for inclusion of the Baucus tax credit provision in any final tax package.

Anyone interested in supporting this legislation should contact their representatives in Congress and the Senate about voting for it.

Balance. We can balance a checkbook. Balance a bike – or a ball. Eat a balanced diet. Achieve balance in our lives or even walk a tight rope if we have really good balance! But what about balance in the home -- and what connection to windows does this have?

Balance in the home can mean a lot of things, but yes, it can also relate to windows and air infiltration. Homeowners who have spent a lot of their hard-earned money on replacement windows now expect to see the benefits of the new windows. After all, the salesman promised substantial fuel savings and a warmer, more comfortable interior. Then, in some cases, they feel those winter drafts that bothered them before. The money’s gone now and they still feel cold drafts. Why?

Most people never realize or perhaps don’t want to admit that there could be other problems with their homes. Many window replacement jobs also include upgrades to the roof, soffit, siding and insulation. All of these are designed to tighten the home’s “envelope” and prevent air exchange to the exterior. Not everyone stops to think about the effects of these changes to the internal airflow of the home.

A home’s heating and air conditioning system, if properly designed, must function with BALANCE. This is to say that the positive or blower side of the system must have access to an air volume equal to the vacuum side of the system. In many cases, some of the home’s negative (vacuum) pressure of the system is drawn through the cracks around the old windows, the joints in old siding, the old soffit, fascia, roofing or uninsulated wall cavities.

When all these areas are closed up, the home’s heating system can be starved for negative volume. Well, guess what! The air has to come from somewhere! That “somewhere” is likely going to be one of the only operating seals left in the home’s envelope --- THE WINDOWS. This pressure can become so great that it will actually pull an entry door open as soon as the latch is released.

Operating windows are designed to allow airflow around their seals by means of weeping systems. These systems are critical to the windows' ability to control water penetration, however they rely on openings inside the window frame to let water escape. These same chambers can never be sealed airtight. Now introduce a vacuum similar to a shop vac to the windows' surface. What do you think will happen? Often it’s a phone call to the contractor or window dealer. “Hi, I spent thousands of dollars on your new windows and I have drafts! What are you going to do about it?”

Remember – the air has to come from somewhere for balance.

As it’s now the last month for the government’s big tax credit program, many homeowners will find, unfortunately, that it may be too late to purchase windows and receive the $1,500 tax credit. The two-year program ends December 31. For one thing, it takes some time to learn enough about windows to make an informed buying decision about something of this magnitude. Among other things, this kind of decision determines how a home will look, how safe and secure it will be, how much maintenance will be required and how energy-efficient and comfortable the home will be.

Not that it’s impossible to get new replacement windows by the end of the month, but time is also needed to manufacture the windows (most replacement windows are custom made to fit the opening of the old window), have them shipped and then have them installed. Compounding the situation is the reality that manufactures are already overbooked and working around the clock in most cases to fill existing orders. Window dealers and contractors are overbooked with window installation jobs. Most are not accepting new projects for 2010 completion.

Something homeowners may want to consider in regard to the expiring tax credit program is that it also applies to other energy-saving improvements – like attic insulation. For example, the new rising star in energy efficiency, reflective insulation, can be purchased immediately (it’s already manufactured and ready to be shipped) and installed quickly and fairly easily. Not that there’s not skill and expertise involved in installing reflective attic insulation, but installing insulation doesn’t require the same level of skill as a window installation. So some dealers and contractors have workers on staff who are not window installers -- but are skilled in installing insulation properly.

Reflective attic insulation is highly effective. It can reduce home energy costs by as much as 30%. (There are some excellent videos that explain the benefits and anticipated energy cost savings homeowners can get from reflective insulation. To see them, start at http://www.radiaflect.com/ ) Moreover, reflective insulation can be placed over existing fiberglass insulation on attic floors, working in tandem with existing insulation to improve a home’s energy efficiency. It can also be installed on un-insulated attic rafters for impressive energy-saving results. For more on the tax credit program as it relates to reflective insulation, visit http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Windows and doors are typically only as good as their installation. Yet, when shopping for new windows and doors, people tend to think more about framing material, operating style, options and the level of energy efficiency they need. What's not on their minds at this point is the installation—from initial measurements to the completion of the project.

It really makes little sense to purchase the best product possible and then try to save money on the installation by going the “Do It Yourself” route, because poorly installed windows and doors will lead to on-going problems, poor product performance, and an unhappy homeowner. There are so many important factors involved—from measuring correctly to installing windows properly—that it really is a challenge for do-it-yourselfers to get it all right.

For instance, these are some of the many things to consider just at the time of measuring: Are the openings square and level? (This affects how the windows and doors are sized for proper fit and function.) How was house constructed? What type of material will the new window or door be anchored to? Are there any water-damaged areas that will need to be repaired prior to installation? What is best the type of windows or doors to use -- new-construction or replacement?

Once the products have been measured correctly, there are still many other factors that must be addressed to ensure a good installation. These include:

1. Proper load-bearing shims—and where to use them.
2. Effective anchoring techniques.
3. Rigid or flexible flashing, based on whether it is a replacement or new construction product.
4. Suitable insulation for the installation.
5. Properly sized sealant joints for expansion and contraction.
6. Sealant that’s compatible with the window and building material it may come in contact with.
7. The possibility that there is exposed wood or other material that may need capped during or after the installation.

Many of the points mentioned are not only important for a good, long-lasting installation, but they also are important in terms of reducing air infiltration and water penetration --- as well as helping with sound reduction. Having a quality, professional installation with a premium product will lead to years of trouble-free operation of those new windows and doors.