Energy Tax Credit
Federal Tax Credit Program Offers Significant Marketing Opportunity in Today's Challenging Building Market
Many window companies make meeting energy efficiency requirements confusing. Not Milgard. We make qualifying simple, with easy-to-select windows that meet the energy tax credit requirements. Forget having to mix and match components from a confusing list of options. With the 3D MAX® energy package, most of our Tuscany® series replacement windows* qualify for this tax incentive. This makes choices easier for your clients and provides greater business opportunities for you.
The files below provide a complete list of Milgard® qualifying products. See a Milgard dealer for more details.
- Dual-Glazed Products – Western Region (735KB PDF)
- Dual-Glazed Products – East of the Rockies Region (563KB PDF)
- Triple-Glazed Products – Western Region (572KB PDF)
- Triple-Glazed Products – East of the Rockies Region (588KB PDF)
New Federal Tax Credits Mean More Business
The American Recovery and Reinvestment Act of 2009 (part of the federal economic stimulus plan), modifies and extends federal tax credits for "qualified energy improvements," which include windows and doors.
- The new tax credits are for 30% of the cost of all qualifying home improvements, up to an aggregate limit of $1,500 for 2009 and 2010 tax years.
- Qualifying replacement windows and doors must have both a U-Factor of .30 or lower and a Solar Heat Gain Coefficient of .30 or lower.
- The tax credit increases a refund or reduces the dollar amount if taxes are owed. So, unlike a tax deduction where taxable income is merely reduced by the amount of the deduction, clients can receive an additional $1,500 on their tax return. That's real money in your client's pocket. It's important to explain this since the difference between tax credits and tax deductions can be confusing.
Money Back Makes This the Right Time to Replace Old Windows.
Many people may be considering replacing their old windows, or building with energy efficient ones, but the uncertainty of the economy makes them hesitant to do so. This tax credit can help your clients feel confident that it's a good time to invest in the right windows and doors, with the potential to receive an additional $1,500 back from the government.
Three Reasons to Choose Milgard
- 1 It's easy for your clients to improve the look and value of their homes.
- Your clients will be impressed with the wide range of styles and options.
- Milgard Tuscany vinyl replacement windows give clients a 93% return on their investment (ROI) in western states. (The nationwide average ROI is nearly 80%.**) An investment in Milgard windows and doors not only pays clients back now with a tax credit, but it also pays them back when they sell their homes. And that's not even considering possible energy savings.
- 2 The energy packages are easy-to-understand and all-inclusive.
- Your clients may hear a lot of confusing energy jargon. Not with Milgard. Our all-inclusive energy packages make energy efficiency understandable.
- Milgard's all-inclusive 3D MAX energy package costs significantly less than purchasing individual components to meet the same requirements.
- With the exception of double sliders, Milgard Tuscany replacement windows with 3D MAX meet or exceed the federal energy efficiency requirements for a tax credit.***
- 3 Easy for a lifetime.
- Milgard Tuscany replacement windows come with a Full Lifetime Warranty including glass breakage, for as long as your customers own and live in the home.
- As an added benefit, if a customer sells their home, Milgard automatically will extend full warranty coverage for 10 years from the effective date of the original warranty to successive owners, free of charge.
- For complete warranty details visit milgard.com.
*With the exception of Tuscany Double Sliders
** © 2008 Hanley Wood, LLC. Reproduced by permission. Complete regional and city data from the Remodeling 2008 Cost vs. Value Report can be downloaded for free at www.costvsvalue.com.
Learn more about federal tax credits for energy efficiency at www.energystar.gov.
- Tax credit is for the cost of the product only. The credit does not include installation costs. Windows or doors must meet a 0.30 U-factor and 0.30 SHGC or lower to qualify.
- Tax credit is 30% of the amount paid for the qualifying product up to the maximums listed below.
- $1500 total maximum tax credit for any and all improvements, including windows and doors, combined over 2009 and 2010.
- The tax credit is part of the economic stimulus plan which modifies and extends federal tax credits for "qualified energy improvements" for 2009 and 2010.
***Most Tuscany® replacement windows (with the exception of Tuscany Double Sliders) with the 3D MAX® energy package will qualify when used for remodeling, replacement or home improvement. For any window, grids and large size windows can have a negative effect on SHGC performances. Check with your Milgard Sales Representative for more information.
Based on the best data available, this information is a partial summary of the revisions to the federal tax code (U.S. Code Title 26, Section 25C), as updated by the American Recovery and Reinvestment Act of 2009. Taxpayers should check with IRS regarding updates to the IRS interim guidance in Notice 2006-26. Check the IRS website for more details. Milgard bears no responsibility for the validation of obtaining the tax credit. Milgard Windows & Doors is not a tax advisor and recommends you consult your tax planner and review all IRS guidelines.
Milgard does not intend to provide and is not providing legal or tax advice on this selling guide and recommends that purchasers consult their own tax advisor to determine whether the windows and doors they purchase qualify for the tax credit.
Products which are shipped to or over altitudes higher than the elevation of manufacture may require capillary tubes to relieve pressure in the insulated glass units. These products do not qualify for the 3D MAX® energy package.
ENERGY STAR® is a registered trademark of the U.S. Environmental Protection Agency.
All Milgard products are custom-made to order. If there is any question if a specific window will meet the 0.30 U-factor and 0.30 SHGC criteria to help qualify for the federal tax credit, please see your Milgard sales representative.
**** Home builders are eligible for a $2000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards.
Please note that, with the exception of the tax credit for an ENERGY STAR qualified manufactured home, these tax credits are not directly linked to ENERGY STAR. Therefore, a builder of an ENERGY STAR qualified home may be eligible for a tax credit but it is not guaranteed.
These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006, through December 31, 2010.
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