About 2011 Tax Credits for Energy Efficient Windows

Energy efficient windows can save you money during the year. They can also save you money at tax time. Tax credits of up to $200 are available for energy efficient windows. Tax credits are different than refunds. Credits reduce the amount of taxes that you owe and can increase the amount of the federal tax refund you may receive. 

Windows and Skylights

In order to qualify for a tax credit, any new energy efficient skylights and windows have to meet energy star certified. If they are not energy star certified then the windows have to meet the International Energy Conservation Code (IECC). The price of the windows is all that can be deducted. Installation costs cannot be deducted and you are required to save your receipt. 10 percent of the cost of the windows, up to $200, can be eligible for the tax credit.

Storm Windows

Energy efficient storm windows must also meet the IECC. You cannot install energy efficient storm windows without installing energy efficient outer windows as well. To get the credit for storm windows you must have the manufacturer certification statement and installation costs cannot be included. 10 percent of the cost, up to $200, is eligible for the tax credit on energy efficient storm windows. 

Using the Tax Credit

Any energy efficient window that you are trying to get a credit for has to be installed at the principal residence of the taxpayer. The maximum credit per year is $500 and this includes any other additions such as energy efficient doors. Some advise installing these improvements in different years in order to take full advantage of the credit.