2011 Federal Tax Credit Overview

In the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act" (H.R. 4853) signed into law on December 17, 2010, Congress reduced the federal tax credit for energy-efficient windows, doors and skylights for 2011 and changed the qualifying criteria.

Qualifying Products: All ENERGY STAR® qualified windows, skylights and exterior doors are eligible. Products must be installed in a consumer's existing primary residence; new construction is not eligible.

Credit Amount: Consumers can claim a credit of 10% up to $200 of the purchase price of qualifying windows and skylights, and 10% up to $500 on qualifying exterior doors. Installation costs are not included.

Lifetime Cap: There is now a lifetime limit of $500 ($200 for windows & skylights) in total credits that a homeowner can claim from January 1, 2006 to December 31, 2011. It is not on top of the $1500 limit in 2009-2010. If a consumer has already reached or exceeded the $500 limit, they are no longer eligible to claim the credit in 2011.

Duration: The revised tax credit is in effect for products installed in a consumer's primary residence between January 1 and December 31, 2011.

For more information, please visit www.energystar.gov