Government Tax Credit to Defray Building Costs on Window Replacements

Building costs can be prohibitive whether it be a new home or a renovation. For consmers looking to commence home improvements a little help from the is more than welcome. There is a tax credit for home improvements that is set to expire at the end of 2010 and forms part of the American Recovery and Reinvestment Tax Act of 2009.

Homeowners are using it mainly for window replacements and the tax credit is equivalent to around 30 percent of the cost of the product with a ceiling of $1,500. The cost of installation is left out of the computation and the credit can only be applied to the primary residence, which disqualifies new construction.

The building costs range from $7,000 to $20,00 and this is quite high as it involves not only on the quality of the window it also takes into account the intricacies of installing replacement windows including leak damage prevention. There are other specifications that homeowners need to adhere to like the energy savings standard governed by a rating system to check the cost efficiency of the windows. Some window replacements actually do not meet the building requirements and are disqualified for the credit.

The windows that consumers need to use to qualify for the credit and bring down building costs should have the seal of the National Fenestration Rating Council. The ratings of the council are labeled on the product and indicates the energy rating among other product specifications.

Another energy rating honored by the government is the Energystar label that is more widely used in the cold regions of the country. The Energystar label is from the US Environmental Protection Agency and labels products meeting the highest energy efficiency levels. But there are some Energystar labels that do not qualify for the tax credit because energy savings depend on where the window labeled with the Energystar rating is being installed.

It is always a good practice to consult experts before embarking on a window replacement home improvement to ensure that building costs are kept in check and that the tax break can be availed.

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