On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits. The highlights are:

  • The tax credits that were previously effective for 2009, have been extended to 2010 as well.
  • The tax credit has been raised from 10% to 30%.
  • The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
  • The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
  • The $200 cap on windows has been removed.

(information from of Tax Credits for Windows

Product Type

Tax Credit Specification

Tax Credit


Exterior Windows and Skylights

U factor <= 0.30

SHGC <= 0.30

30% of cost, up to $1,5002

Not all ENERGY STAR labeled windows and skylights qualify for tax credit.

Storm Windows

Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone

30% of cost, up to $1,5002

Manufacturer Certification Statement3 will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)4 that a product may be combined with to be eligible in specific climate zones.

Exterior Doors

U factor <= 0.30

SHGC <= 0.30

30% of cost, up to $1,5002

Not all ENERGY STAR doors will qualify.

Storm Doors

In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC

30% of cost, up to $1,5002


Claiming Your Tax Credit

After establishing your eligibility to claim a Tax Credit for Non-Business Energy Property § 25C, please complete the following to ensure accuracy:

  1. Request an invoice demonstrating the cost breakout of the window or door components from your contractor. This cost must exclude the cost of onsite preparation, assembly, original installation labor, other components or sales tax.
  2. Download the applicable Manufacturer's Certificate PDF following the link below (Adobe Acrobat Reader required), as well as retaining the ENERGY STAR® labels from qualified products.
  3. Retain the contractor invoice, ENERGY STAR® labels and the Manufacturer's Certificate for your IRS records. You are not required to provide this documentation to the IRS, but you will be required to present it if audited.

*All of our vinyl replacement, specialty and new construction windows and patio doors meet the requirements of the Credit for Non-Business Energy Property § 25C tax credit as ENERGY STAR ® label-bearing products. A complete listing of applicable products is available within the manufacturer’s certificate.