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PITTSBURGH, PA –As part of the energy bill approved in 2005, homeowners are eligible for a one-time tax credit of up to $500 off their federal tax obligation for retrofitting their homes with energy saving products and appliances. A homeowner can claim up to $200 of the $500 credit for upgrading windows specifically.* The federal government has announced that Energy Star-labeled windows will qualify for the credit. For existing residences, the IRS has provided a "special rule" (on page 7 of the IRS Guidance Notices 2006-26) for claiming the $200 residential efficient window tax credit with Energy Star Windows. The new special rule reads as follows: .03 Special Rule for ENERGY STAR Windows and Skylights. Taxpayer may treat an exterior window or skylight that bears an ENERGY STAR label and is installed in the region identified on the label as an Eligible Building Envelope Component and may rely on such ENERGY STAR label, rather than on a manufacturer's certification statement, in claiming the credit. The rule is expected to make compliance with the IRS tax credit requirements easier while reducing transaction and recordkeeping burdens to consumers. Rather than obtain a special window manufacturers' certification statement, all parties can now rely on using the established regional ENERGY STAR window rating label. The ENERGY STAR web site has further information on the regional window labels and performance criteria at energystar.gov. Both the ENERGY STAR sticker and the NFRC stickers must be removed from the windows by the homeowners and saved. Homeowners are advised to keep the ENERGY STAR and NFRC LABELS and purchase receipt as proof for the IRS, in the event they are audited. As of October 27, 2006, Park Avenue Windows will print the Energy Star and NFRC certifications onto a single, easily removable label. Park Avenue Windows new labels will be 4" wide x 9" tall and will facilitate the homeowners' task of saving these labels and keeping their documentation in case of IRS audits. Reprints of Energy Star and NFRC labels for jobs already installed are available. Refer to your tax preparer for additional tax credit details. NOTE: The initial Energy Policy Act of 2005 (EPAct of 2005) stated that homeowners' needed to procure such a document from the manufacturer. However, since then, Notice 2006-26, has been amended stating: "Specifically, this notice provides procedures that manufacturers may follow to certify property as either an Eligible Building Envelope Component or Qualified Energy Property, as well as guidance regarding the conditions under which taxpayers seeking to claim the § 25C credit may rely on a manufacturer's certification (or, in the case of certain windows, an Energy Star label)." The Manufacturer's Certification Statement is generally a helpful tool in most situations. However, since it is a generic statement, it does not carry information relative to any specific product or glass package. This is due to the fact that such a document would have to include a matrix containing huge amounts of information for all qualifying products, and would include proprietary information. IMPORTANT: Homeowners are advised to keep the ENERGY STAR and NFRC labels along with their purchase receipt as proof that their Park Avenue Window products meet the ENERGY STAR® qualifications for the IRS Tax Credit in their area. The labels and purchase receipt will only be needed in the event the homeowner is audited.
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Park Avenue Window Manufacturer 5450 Second Avenue Pittsburgh, PA 15207 PH: 800-245-1540 ext. 1941 www.parkavenuewindows.com info@parkavenuewindows.com
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