Nonbusiness Homeowners Energy Credit Extended to 2010 and Modified

The American Recovery and Reinvestment Act was signed into law on February 17th, 2009.  For your convenience, the full text of the American Recovery and Reinvestment Act is available from the White House Website through the following link: American Recovery and Reinvestment Act of 2009

New law. The Recovery Act extends the Code Sec. 25C nonbusiness energy tax credit for one year through Dec. 31, 2010. ( Code Sec. 25C(g)(2) , as amended by Act Sec. 1121(e)) For tax years beginning after Dec. 31, 2008, for property placed in service before Jan. 1, 2011, the Recovery Act raises the 10% credit rate to 30%. All energy property otherwise eligible for the $50, $100, or $150 credits is instead eligible for a 30% credit on expenditures for the property. (Code Sec. 25C(a) ) In addition, the $500 lifetime cap (and the $200 lifetime cap for windows) is eliminated and replaced with an aggregate cap of $1,500 for property placed in service after Dec. 31, 2008 and before Jan. 1, 2011. (Code Sec. 25C(b) ) Effective on Feb. 17, 2009, there are revised standards for energy efficient building property (electric heat pumps, central air conditioners and water heaters), oil furnaces and hot water boilers, and exterior windows, doors, and skylights. For tax years beginning after 2008, a revised standard also applies for stoves using biomass fuels. (Code Sec. 25C(c) , Code Sec. 25C(d)) For tax years beginning after Dec. 31, 2008, the limitation on subsidized energy financing is also eliminated. (Code Sec. 25C(e)(1) , as amended by Act Sec. 1103(b)(2))
Performance criteria for windows and doors must meet a minimum standard of .30 or lower U-Value and SHGC (Solar Heat Gain Coefficient).
Federal Tax Credits for Energy Efficiency

Home owners can claim the 25C and 25D credits on Form 5695 when they prepare their income tax returns. They should also retain records that include:

• Name and address of the manufacturer
• Identification of the component
• Make, model or other appropriate identifiers
• Statement that the component meets the 25C standards
• Climate zones for which the criteria are satisfied
• Additional information for storm windows, if applicable
• A declaration that the certification statement is true

Confirm all information with your accountant.

 

Due to National’s superior performing products, when we place the low-e on the exterior surface (#2) and combine with the use of Argon Gas we achieve the above stated U-Value and SHGC requirements.  This is a true benefit to your customer since we do not need to add significant cost to meet the new performance ratings, means you do not need to add additional costs to your job.  This allows your customer to net their complete Tax Credit of up to $1500. 

Just another reason National is…..Your Partner in Success!