I read a really interesting article last week titled, “Energy Efficiency Hits from the Doors (and Windows).” The name might sound a bit silly, but it talks about how you can actually feel—and hear!—the difference when you replace leaky old windows and doors with newer, ENERGY STAR qualified models. Comfort, lower energy bills, no drafts or rattling window panes—all benefits that I think many homeowners with old homes would appreciate!

The article also provides an important reminder—consumers can still take advantage of federal tax credits for windows and doors for just a few more weeks. That could save you even more money! However, homeowners who want tax credit benefits must move quickly—because the federal tax credits expire on Dec. 31.

To read this entire blog article, visit http://www.eereblogs.energy.gov/energysavers/post/Energy-Efficiency-Hits-from-the-Doors-(and-Windows).aspx.

With all of the political rhetoric that fills the newspapers and the television, has it made you afraid to spend money? With the housing market still experiencing ups and downs, has it made you throw up your hands and say it just isn’t worth putting another dime into the house? It doesn’t matter what political affiliation you are, all the government arguing - whether it be on the national level or even the state level - makes it difficult to spend money on anything, from true retail goods to improving your home.

I have talked to countless individuals about the economic ups and downs. Everyone is longing for the good times to come again. It seems that ‘bad times’ have lasted a lot longer than the ‘good times.’ I am not sure if this feeling is factual or not. But here is what I am sure of, if we sit on our hands and do nothing, it can be compared to not making a decision at all. And that is the worst thing we can possibly do.

I understand and appreciate that everyone’s situation is different. But if you have the economic means, now is the time to spend. And the best bang for your buck individually and economically is spending in the building products industry. This industry has so many small businesses that employ so many people. The building products industry is truly the backbone of the U.S. economy. There are still tax credits available with different building products and with business still soft, you aren’t going to get a better deal than you are today!

I’m biased towards vinyl replacement windows and doors. There are many great reasons to purchase energy efficient vinyl replacement windows, here are just a handful.

1. Energy efficient
2. Improve curb appeal
3. Can reduce outside noise
4. Make your home more secure and safe
5. Improve the value of your home
6. Certain tax credits still available through the end of the year

There are countless reasons to invest in energy efficient windows and doors. So, don’t let the politicians, the news, even the economy get you down. Do yourself some good and the economy some good, invest in your home and vinyl replacement windows!

Consumers still have a couple of months to qualify for tax credits for making their homes more energy efficient. Here is a quick recap of the 2011 tax credits available for windows, doors and insulation.

Consumers can qualify for a tax credit up to 10% of the cost of qualified replacement windows (new-construction products are not applicable), or a maximum of $200, or up to 10% or a maximum of $500 of the cost of qualified doors. This new tax credit applies to ENERGY STAR labeled windows and doors. Certain types of insulation—such as Radiaflect reflective insulation products—also qualify for a tax credit of up to $500 or 10% of the cost of the project. Products must be installed between January 1, 2011 and December 31, 2011 to qualify for tax credits.

There is one slight “catch” however. Consumers are limited to a lifetime maximum tax credit of $500 for any combination of tax credit qualifying products (windows, doors, insulation, HVAC, roofing, etc) from Jan 1, 2006, to Dec. 31, 2011. That means that consumers who have already reached or exceeded the $500 limit are not eligible to claim the credit in 2011. More information on the tax credits can be found at http://www.gorell.com/taxcredits/.

Consumers who are considering making their homes more energy efficient may want to move quickly to get their home improvements completed before the end of the year. After all, who is going to turn down several hundred dollars of “free money” – plus even more savings as a result of a more efficient home!

Although new legislation has reduced the amount of the tax credit and changed the qualifying criteria, consumers are still eligible for tax credits for making their homes more energy efficient in 2011. Here is a quick recap of the 2011 federal tax credits available for windows and doors:

The new 2011 legislation provides a consumer tax credit up to $200 for 10% of the cost of qualified replacement windows, (new-construction products are not applicable), or up to $500 for 10% of the cost of qualified doors. This new tax credit applies to ENERGY STAR labeled windows and doors installed between January 1, 2011 and December 31, 2011.

There is one slight “catch” however. Consumers are limited to a lifetime maximum tax credit of $500 for any combination of tax credit qualifying products (windows, doors, insulation, HVAC, roofing, etc) from Jan 1, 2006, to Dec. 31, 2011. That means that consumers who have already reached or exceeded the $500 limit are not eligible to claim the credit in 2011.

Although this credit is much reduced, it’s still “free money” for those who are considering purchasing windows or doors and have not taken advantage of the previous tax credits.

2011 starts us off on a path of confusion in regard to tax credits for energy-efficient home improvement products. Much like the maze Harry Potter had to navigate to win the golden goblet. The new energy tax credit qualifications are “twisting our reality” and even have industry experts confused. The federal tax law was updated effective January 1, 2011 to reference the 2009 IECC code as the qualification criteria for window performance. A posting on the IECC site also confirms the 2009 IECC as the standard for qualifying window products for the new tax credit. The American Architectural Manufacturers Association (AAMA) recently released an article saying that the Energy Star product qualifications are now falling in line with the 2012 IECC, which is not mentioned in the tax law.

The Energy Star site states that Energy Star labeled products meet the qualifying standards for the new 2011 tax credit-yet this same site also bears warning that not all Energy Star products qualify. I assume that refers to Energy Star products such as light bulbs or stoves not windows.

The industry is waiting for IRS clarification on the rules. Consumers may want to ensure that the windows purchased this year meet the most stringent of these codes for their area if they are planning on a 2011 tax savings from the purchase.

One thing is for certain. Improving old less efficient windows in any fashion will provide benefits far beyond 2011….. So perhaps the tax credit isn’t a big concern after all.

Well, 2010 is over and, although we may not be too excited about it, many of us are preparing to file our federal tax returns. Homeowners who purchased highly energy-efficient windows to take advantage of the $1,500 federal tax credit for 2010 now need to gather the necessary documentation to get the tax credit.

Homeowners will need two types of documentation: 1) Receipts showing their 2010 purchase and installation of windows that meet the tax credit criteria, and 2) the window label showing the NFRC ratings (e.g., U-values and Solar Heat Gain Coefficients) – OR the Manufacturer’s certification statement that shows that the windows purchased are products that meet the criteria.

This may sound a little confusing, but it’s actually pretty straight-forward. Of course every homeowner should have his or her receipts. In regard to the second documentation item needed, some home improvement companies or window dealers provided the NFRC window labels to homeowners upon completion of the window installation. If not, and homeowners cannot get a replacement NFRC window label, they need the Manufacturer’s Certification Statement. This should be available from the window manufacturer.

Forward-thinking window manufacturers offer downloadable PDF files of the manufacturer’s certification statements on their web sites. Gorell provides a helpful overview of the tax credit program as well as the certification statement PDFs for homeowners at http://www.gorell.com/taxcredits. There are also PDFs on this web page that show homeowners which Gorell products meet the tax credit criteria and which do not. Fortunately, a very high percentage of Gorell windows do meet the criteria.

Some Manufacturer’s Certification Statements also include an area for the homeowner to write in information about the products, purchase and installation dates, the contractor or company that sold and/or installed the windows, etc. On Gorell’s forms, this is called Homeowner’s Records, and this section makes it easier for both the homeowner and the preparer in completing the federal tax returns.

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.

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.

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

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.

There’s a new energy tax credit being debated in Congress. Based on what I’m reading, you may want to act this year if you are thinking about replacing windows.

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

The current expiring tax credit allows you a 30% tax credit up to $1,500 for this year. For homeowners to qualify for this tax credit, you must purchase windows with a .30 U-value and a .30 Solar Heat Gain Coefficient (SHGC). Most Energy Star labeled windows fall into this category, but you need to make sure this is what you’re purchasing.

Also, with the Energy Tax Credit that is expiring at the end of this year, it’s 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 you getting your windows installed before the end of the year and qualifying yourself for up to $1,500 in tax credits.

To see the draft language of the proposed bill, visit click here.

I installed a vent in my attic in August. That was an experience – I should’ve taken a thermometer up with me. It was unbelievably hot up there. Now that we've got cooler, less humid weather in Pennsylvania, being up in the attic is a lot more bearable. It fact, now's a good time to check your attic to see what insulation is up there – colder weather and heating bills aren’t far off.

While you're up there, think about adding reflective insulation. It's a very different kind of insulation (compared to blown-in or batt fiberglass) because it significantly reduces radiant heat transfer (fiberglass insulation only reduces convective and conductive heat transfer). In cold weather, reflective insulation placed over fiberglass insulation on your attic floor reflects heat escaping through the ceiling back into your home. If you have reflective insulation installed on your rafters, it reflects heat back into the home instead of allowing the heat to escape through the roof. Of course, it's really effective to have reflective insulation installed on both the rafters and the attic floor. Every home's different, but it's not uncommon to reduce home heating bill costs by 20% - 25%.

In spring and summer, the results are unbelievable, especially when you have reflective insulation installed on the rafters. With attic temperatures 30-40 degrees lower, you can only imagine the load this takes off your air conditioner!

One more thing: you don't want to procrastinate on adding good reflective insulation to your attic. It qualifies for the $1,500 federal tax credit (see www.radiaflect.com for more info) this year. One catch – it needs to be installed, not just purchased, before January 1st.

Despite the economic weakness of the last few years, I’m optimistic that the economy will continue to improve during the rest of 2010. We sincerely hope homeowners take advantage of the excellent tax credit program for purchasing energy-efficient windows that expires at the end of this year. That could have a very positive effect on the economy and reduce energy consumption. The Home Star program has evidently made it into a funding bill in Congress, but it won’t come to a vote until later in the year, if at all. It’s far too soon to know what exactly it will do for the construction industry, but I believe it can reinvigorate the U.S. economy if it passes. The people who make, sell and install replacement windows and doors are virtually all small businesses that create actual, good jobs.

Personally, I believe government is too big and that too often it makes bad decisions. Yet I also believe that programs like Energy Star – that reduce energy usage in homes and buildings, make people more comfortable in their homes, improve the value of their homes, and create real lasting jobs -- are worth the investment. I’m sure we’ll all be closely watching the elections this Fall. Who knows. Maybe voters will send the kind of message to Congress that will actually stimulate consumer confidence— although it’s hard to know for sure what will happen.

One of the things we've been hearing from homeowners this year about purchasing replacement windows for their homes is NOT that they don't have the interest or intent to replace their old windows, but that they can't get the financing to buy them. This has been disheartening to many because if there has ever been a time to replace their old inefficient windows with new highly energy-efficient windows, it's NOW! We all know that heating and cooling costs continue to climb. And they know that the current $1,500 tax credit for replacing their windows will expire this December. Having energy-efficient windows installed this year would allow them to lower their home energy costs immediately.

Just think about the frigid weather we had this past winter throughout most of the country. Think about the weather this summer -- it's been one of the hottest on record.

So, we all know that replacing those old windows makes perfect sense. But what if the banks aren't willing to finance a home improvement loan? While banks are starting to lend money, it continues to be a challenge for many. It may not be as available as we'd like it to be, but it's better than it has been in quite a while.

As a solution, many Gorell dealers also offer financing from GE Money, and we're pleased to now announce the addition of another finance programs from a solid and reputable financing company, AFC First. Both GE Money and AFC First specialize in home improvement loans for energy-efficiency upgrades. Gorell dealers have already begun to sign up with AFC First so that they can offer homeowners another source of financing, but please ask them about these programs when discussing Gorell windows and doors with them. With financing opportunities like these becoming available, we're confident homeowners will have the opportunities to have windows installed before the end of the year.

Too often we see and hear advertising that screams “Hurry! Once-in-a-Lifetime offer! This price will never be this low again!” And we become skeptical – because next month the offer is repeated and the price may be as low or lower.

The government’s ENERGY TAX CREDIT PROGRAM, which ends this December 31, 2010, should NOT be looked at in the same light. This program, which offers homeowners up to $1,500 to install qualified energy-efficient windows, is a really good one that probably will not be repeated because of our country’s growing debt.

Moreover, another huge reason for homeowners to take advantage of the program is that installing highly energy-efficient windows and doors LOWERS home energy bills – so it puts more cash in consumers’ pockets IMMEDIATELY once these products are installed. That’s besides all the other benefits, like easier maintenance and a more comfortable and more beautiful home.

What’s the catch? Well, it’s not really a catch, but it’s important for homeowners to know that — to get the tax credit — qualifying windows and doors must be INSTALLED before December 31, not just purchased! Some people might say, "But it’s a long way to the end of the year — There’s plenty of time."

Not exactly true. The problem is that it takes time for consumers to research products, meet with a home-improvement company, make decisions about product styles, colors and options and arrange for financing when needed. Then, the contract has to be executed, the measuring done and several weeks are needed for companies like ours to manufacture and deliver the windows or doors to the dealer. Lastly, the home-improvement company or contractor needs to schedule the installation, with new projects going to the end of the line.

The entire process easily takes months, and you can imagine that — as we get closer to the end of the year — the number of people recognizing the need to move on this tax credit opportunity will increase exponentially. I am 100 percent certain that a great many people who want to take advantage of the tax credit program will lose out because they waited too long. We saw it last year with a huge rush in orders at the end of the year. The difference is the credit lasted from 2009 through 2010, so the ones who missed getting products installed for year-end 2009 had the ability to still take advantage of the credit in 2010. Yes, they missed the credit for the 2009 tax returns, but at least they could take advantage of it this year. The credit is not scheduled to continue, and there is no talk in Congress to continue the credit. December 31, 2010, you either have had your windows and doors replaced or you lose the opportunity to save $1,500 forever.

I urge homeowners who need new windows and doors to start NOW, today, to ensure they beat the rush and get both the tax credit money, as well as all the other immediate benefits of having new windows and doors!

In addition to qualifying replacement windows and doors, some reflective insulation products also qualify for the $1,500 federal tax credit program that ends this year. Most homeowners don’t even think about the effectiveness of insulation in their attics for a number of reasons. One is that most people just don’t think about their attics since they’re rarely “up there.” Out of sight, out of mind. Another is that consumers don’t realize there’s anything they can do other than replace all their attic insulation, which can be costly.

Yet, in reality, it's not unusual that 45% of a home's wasted — or lost — energy is through the attic, mostly through radiant transfer. Ordinary fiberglass insulation does little to stop radiant transfer. A good quality reflective insulation, however, can cut radiant transfer by as much as 97%. And this kind of insulation can actually be used in tandem with existing standard insulation. It goes up easily and quickly — and isn't expensive. Reflective insulation is definitely worth looking into. A good web site to learn more about how reflective insulation works and why it's worth considering is http://www.radiaflect.com

At the very end of 2009, there was a surge of purchases of qualifying windows and doors for the $1,500 federal tax credit program. It's likely that many consumers didn't realize that they had another year to have qualifying products purchased and installed.

There will almost certainly be another surge at the end of 2010. This year, however, will be different than 2009 for several reasons:

1. There is no additional year in which to participate in the program.

2. To qualify for the credit, qualifying products must not only be purchased, they must be INSTALLED before Dec. 31, 2010.

3. Contractors installing replacement windows and doors will likely have a backlog of projects for homeowners who want to have their windows installed in time.

If you want to take advantage of the tax credit, you may want to take action immediately. Do your research on qualifying products and make decisions on what to purchase. Contact a dealer from whom to purchase qualifying windows and/or doors and ensure the dealer will install them before December 31. Unless it can be proved the windows and doors were installed in 2010, they will not be eligible for the federal tax credit.

For a concise, easy-to-understand overview of the tax credit program, see http://www.replacementwindows.org/2010/06/accurate-tax-credit-information/

It seems like a long time away, but energy tax credits on replacement windows and doors expire at the end of the year. Just a reminder, on windows and doors that qualify for the tax credit (.30 U-value and .30 SHGC), as a homeowner, you are eligible to receive a tax CREDIT of either 30% of the job -- or a cap of $1,500 (less labor). And remember, this is a tax credit, not a rebate.

Also, certain reflective insulations also qualify for the tax credit. Here's a web site of one that does qualify, www.radiaflect.com.

Here are some details that you need to remember for the tax credit. The windows, doors and insulation need to be purchased for your principal residence to qualify. Also, unfortunately, windows for new homes and rental units do not qualify for the credits. Check with your accountant about other details regarding the credit -- including how much you pay in federal income tax, because this will affect the tax credit you'll receive.

When you make the purchase for your home, make sure you get the manufacturers certification statement -- along with the costs of the windows or reflective insulation -- to include with your taxes.

Let's take advantage of these credits while they last. It makes a difference for the environment, for the economy, and for your personal energy savings!

Many of us have heard about the Home Star Energy Retrofit Act of 2010 (or "Cash for Caulkers") program that was passed by the House of Representatives last month and is currently waiting to clear the Senate. It sounds as if this bill could be a win/win situation for homeowners and contractors--homeowners will get excellent rebates on "green" products which, in turn, should kick-start the construction industry and create jobs.

However, the bill itself is VERY comprehensive. There are 13 types of retrofit projects eligible for rebates, and each product has unique eligibility requirements and set rebate amounts--so it can be quite confusing for consumers. I recently read an excellent blog article that does a nice job of breaking down the eligible projects by type and giving a concise description of the requirements and rebates available for each. (http://tinyurl.com/2f3bhs8) Whether you’re a consumer or a contractor, this easy-to-understand chart will make it easier to clearly see what types of rebates the Home Star bill will provide.

And although I believe Home Star will be great--both for homeowners who want to make their homes "greener" and save money on energy costs, and for contractor still feeling the effects of the economic downturn--it’s important to remember that this bill could take weeks, or even months, to become a law. For homeowners who want to replace their windows or doors, add insulation, or make other energy-efficient improvements to their homes RIGHT NOW, there are still excellent federal tax credits available for 30% of the cost of qualified products--up to $1,500. For more information on the existing tax credits, visit http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.

As Congress debates the details of the Home Star bill many people have asked the question of which federal program is better for them – Home Star or the Tax Credit program. Many consumers have delayed their buying decision until they learn whether Home Star will ever be passed and if so, what the final language will mean to them. As with most decisions like this, there isn’t a clear-cut answer. It really depends on your situation.

The American Recovery & Reinvestment Act of 2009 (ARRA) created a tax credit for homeowners who replaced their old windows with new energy efficient replacement windows. The tax credit allowed the homeowner to receive a credit of 30% of the window cost (excluding installation), with a maximum of $1,500. The money would come in the form of a tax credit on your tax returns. As with most tax credits, it reduces your tax liability. If you have no taxable income or tax liability that can be reduced, you wouldn’t receive a benefit. For the average working class person, this tax credit is a significant incentive and would increase their tax rebate or reduce their tax payment in April.

The Home Star Energy Retrofit Act of 2010 is a bill that is being debated in Congress now. It isn’t clear whether this will ever become a law or not. So, there is a risk is waiting to see if it gets passed because the tax credit program expires on 12/31/10. You don’t want to miss out on both of these programs. The draft language of Home Star proposes upfront refunds on energy efficiency upgrades to your home. This could include windows, insulation, water heaters, HVAC, etc. Replacing windows would potentially offer a rebate of $1,000 if 8+ windows were replaced (or 75% of the windows in the home). This $1,000 would be taken off of the contract price from the home improvement company who sells you the windows. They would then apply for a refund from the government. This is similar to the Cash for Clunkers program that car dealerships offered.

The program that is best for you depends on your individual situation. The pros for the tax credit are that it exists today and the rebate amount for windows is higher. Home Star, if passed, would provide a lesser amount for windows, but it would be upfront money. Home Star would also have the benefit of allowing you to do multiple efficiency upgrades at one time to allow for an even higher rebate. e.g. – You could replace your windows, add insulation to your attic and add a solar hot water heater. This might result in several thousand dollars in discounts, but you’d have a much higher investment cost to get those returns.

Regardless of which program you feel best suits your needs; you don’t want to pass up these opportunities because they won’t be around for long.

There has been lots of talk about the energy tax credits available for improving the energy efficiency of our homes. Now Congress has another program that they have been debating named the HOMESTAR program.

This proposed program as it is written currently has tax credit ranging from $3000 to $8000 depending on how much you spend on your energy efficient projects. It also is based on the total scope of your overall projects.

The current tax credit in place today allows homeowners to deduct 30% (up to $1500) off the materials of an approved Energy Star home improvement upgrade. This program is scheduled to expire at the end of 2010.

So as homeowners, should we wait to see if the HOMESTAR program passes, take advantage of the current tax credit program, or just do nothing? If we as homeowners choose to do nothing, we are already paying for bad windows, insulation etc. We just accept the fact that our energy bills are what they are, and seem to increase every year. We just pay the bill, no matter how painful it is.

But if we improve our homes with energy efficient windows or reflective insulation for example, we not only invest in our homes, but we also save money on our heating and cooling bills. On top of this, we make our homes more comfortable to be in during the year. Going this route, not only do we get the benefit of lower energy bills and comfort, but we also add to the value of our homes. Google the Cost vs. Value report to see what I mean.

My viewpoint is obvious, I believe it is better to do something than keep the status quo. I compare it to making a difficult decision, the worst thing you can do is nothing. This being said, what should we do as homeowners when it comes to taking advantage of these tax credit programs?

Right now, the decision is easy. There is only one program in place and this is the energy tax credit of up to $1500. There is no guarantee the HOMESTAR program will pass, so it is better to take advantage of the program already in place before it expires.

With the HOMESTAR program, even if it does pass, it is my OPINION, that we will be able to somehow take advantage of both programs. But no one will really know for sure until the bill actually passes, if in fact, it does.

If you’re still considering replacing your windows in 2009, you may be finding that window dealers or home improvement companies are not as available as before to meet with you to discuss windows. This is actually not unusual, because traditionally November is a time when homeowners rush to replace their windows before the colder weather arrives -- and window dealers have more work than they can handle.

Compounding this situation this year are a few additional factors. One is pent-up demand and the improving economy. Many who waited because of lack of confidence in the country’s financial stability now feel they can make purchases with confidence.  Another factor is unquestionably the $1,500 federal Tax Credit program and the rush to purchase qualifying windows before year’s end.

A thing or two about the Tax Credit: One is that windows must be installed in 2009 to be eligible for the credit to be taken on your 2009 return. It’s still possible, of course, but it will be close if you’re ordering windows now. The other thing to remember is that you do have until December, 2010, to take advantage of the program.

The good news? If you do purchase windows now and they are installed in early 2010, you still win financially because you’ll save money with lower winter heating bills – and you still get the tax credit (although later).

So many manufacturers and companies are promoting the amazing $1,500 tax credit that homeowners can get as part of the 2009 American Recovery & Reinvestment Act. This is a very good thing for the home improvement industry because it stimulates business. It’s good for the country because it stimulates business, helps make the environment cleaner and lessens America’s dependence on foreign oil.  And of course it’s great for homeowners because it puts cash into homeowners’ hands  and saves them money by virtue of lower heating and cooling costs.

Some companies are so excited to push this tax credit program that they fail to fully explain all the details. Gorell has always understood the importance of doing business with integrity and works with home improvement specialists that carry Gorell windows to take the time to ensure homeowners understand the requirements of the program—and talk to their tax advisors about the tax credit. While this is a great program for consumers, there are specific requirements pertaining to products purchased for the tax credit and there are also government tax regulations pertaining to the tax credit program. For example, the tax credit applies only to the homeowner’s primary residence. Also, a homeowner’s tax credit cannot exceed his or her tax liability. For more on the tax credit rules and regulations, visit http://www.nahb.org/generic.aspx?genericContentID=113316.  Gorell always encourages homeowners to talk to a tax advisor to review individual situations.   

On June 1, the U.S. Energy Tax Credit reverted to the original window and door criteria established in February as part of the American Recovery and Reinvestment Act of 2009.  In April, the government had announced that it would allow any ENERGY STAR qualified windows or exterior doors purchased between January 1 and May 31 of 2009 to be eligible for the $1,500 tax credit.  The main criteria now is that windows and doors must have a U-value (U-factor) of 0.30 or less and a Solar Heat Gain Coefficient (SHGC) of 0.30 or less. Note: Not all ENERGY STAR qualified windows and doors meet these criteria.

So if you purchased ENERGY STAR qualified windows or doors between January 1 and May 31 of 2009 -- regardless of their U-value and SHGC ratings --  you are eligible for a tax credit up to $1,500. If you purchase them from June 1, 2009 to December 31, 2010, you are eligible for the same tax credit as long as they meet the 0.30/0.30 criteria. There are other criteria, by the way. See ENERGY STAR's web page www.energystar.gov/index.cfm?c=products.pr_tax_credits for more details.

For windows and doors qualifying from January 1, 2009 to May 31, 2009, you can use (for tax purposes) the ENERGY STAR labels that came with them. You can also use applicable Manufacturer's Certification Statements for this period. 

From June 1 to December 31, 2010, you cannot use the ENERGY STAR labels for tax purposes; you can only use applicable Manufacturer’s Certification Statements from the manufacturer.

Gorell's statements for both time periods are available on its web site, http://www.gorell.com/pages/energy_tax_incentive_act.htm

The tax credit for several home improvements including windows was part of the American Recovery and Reinvestment Act of 2009 implemented back in late February. In the window industry, this act caused lots of confusion as requirements for windows qualifying for the tax credit, were vastly different than qualifying a window for Energy Star.

The Energy Star criteria has been the benchmark in the industry for many years. It seemed that the right arm didn't know what the left arm was doing in this case. You would have thought the different branches within the government would have consulted each other, in this case, the lawmakers and the Dept. of Energy. Unfortunately, this didn't happen, and there was a lot of confusion that arose.

Here is the challenge that came up, in order for windows to qualify for the tax credit, the windows needed to achieve an overall u-value of a .30 or less, and achieve a solar heat gain coefficient (SHGC) of a .30 or less. The numbers are not particularly unfair to window manufacturers, but they are a bit unfair to homeowners.

For example, a person living in the north, would want the SHGC to be higher (have less performance). The reason for this is in the winter, homeowners want more of the sun's rays to come in and heat the house. This results in using the home's heating unit less.

In southern climates a SHGC of a .30 or less makes sense because homeowners in these climates, want to keep the sun's rays from heating the house up for the majority of year, thus relying less on their air conditioning units.

And what if you purchased windows earlier in 2009 before the tax credit was announced, or if you had windows in process when the announcement was made, that were Energy Star qualifed, but didn't fit the .30/.30 criteria?

Well the IRS has just announced that Energy Star qualified windows purchased through June 1st, 2009, would also qualify for the tax credit. On June 1st, the IRS will release another statement clarifying their position, but it is almost certain that the .30/.30 qualification will be back in full effect.

Many window manufactures didn't have windows that could get to the .30/.30 qualification, and many still don't. From a homeowner perspective, if we are in the market to improve our homes, we are going to look at the tax credit qualified windows first. T

his has resulted in many window manufacturers to implement new glass packages, new window packages, and more R&D to make this happen sooner rather than later. Initially, this could result in higher costs to homeowners, but in the long run, in my opinion, it will result in better performing windows using less energy. This will reduce the use of natural resources whether domestic or foreign - and it will help us become a greener nation.

The Energy Tax Credit There has been a lot of discussion surrounding the new tax credit available for homeowners that replace their windows and doors with more energy efficient products. The exact wording of the language written in the American Recovery and Reinvestment Act of 2009 is a bit confusing.

However, let me highlight the points of this tax credit for you by going through a summary from Energy Star’s website, www.energystar.gov. To qualify for the tax credit, windows, doors and skylights placed in service after February 17, 2009 must have a U-Factor and Solar Heat Gain Coefficient equal to or less than a .30. You can find the U-Factor and SHGC performance numbers on the National Fenestration Rating Council (NFRC website) www.nfrc.org.

Qualifying products purchased between February 17, 2009 and December 31, 2010 are eligible for a tax credit equal to 30% of the product cost. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, water heaters, windows, and doors) is $1500 during the years of 2009 and 2010. So to summarize, windows and doors with a u value and SHGC equal to or lower than a .30 will qualify for the 2009 and 2010 tax credits.

Let me provide you with a couple of examples. If you ordered windows and the total cost without installation was $5000, you would qualify for a $1500 tax credit, the maximum allowable. As 30% of $5000 is $1500. A different example would be if you purchased $3000 worth of windows, your total tax credit here would be $900 or 30% of the cost of the windows.

As far as Gorell Windows and Doors, I am proud to say all of our best selling products with standard insulated glass, low-e and argon qualify for the tax credit. Ask a Gorell accredited dealer about specific details. Also, the US Department of Energy and the Environmental Protection Agency, has again named Gorell the National Energy Star Partner of the Year for the sixth consecutive year as well as the Sustained Excellence Partner for the fourth consecutive year. Gorell is the only window and door manufacturer in the country that has earned these two awards this many times.

Finally, if you are looking for window and doors that not only provide superior energy efficiency but also are environmentally windows, Gorell Windows and Doors is also proud to be the only vinyl window company in the country to be Green Seal certified.

At Gorell, we are committed to providing you with the window and door technology of tomorrow – today!