What Is the Energy Tax Credit?
The tax credit made available to homeowners as part of Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law December 17, 2010, extends certain energy efficient tax credits for qualifying windows, skylights, and exterior doors for a period of one year. Consumers can claim a credit of 10% up to $200 of the purchase price of qualifying windows and skylights and 10% up to $500 for qualifying exterior doors. Installation costs are not included. This is a dollar-for-dollar reduction, not a tax deduction – an immediate Federal tax savings!

There is now a lifetime limit of $500 ($200 for windows/skylights) in total credits that a homeowner can claim from Jan 1, 2006 to Dec. 31, 2011.  It is not on top of the $1,500 limit in 2009-2010.  So if they have already reached or exceeded the $500 limit, they are no longer eligible to claim the credit in 2011.  The $500 aggregate lifetime limit is for any combination of all tax credit qualifying products (HVAC, insulation, roofing, etc), not just windows, doors and skylights.  If they have claimed less than $500, they can claim the difference up to the $200 cap for windows and skylights and $500 for exterior doors.

Which Products Qualify?
All Energy Star qualified windows and doors are eligible. Products must be installed in a consumer's existing primary residence; new construction is not eligible.  It’s Ring’s End’s job to help you find the replacement windows, doors, skylights, insulation, and roofing that meet Federal criteria – and find these products easily and quickly. Ring’s End clearly identifies qualifying products with NFRC labels, as you’ll see when you visit our showrooms. The Ring’s End sales staff is specifically trained to answer your questions about the Energy Tax Credit and about which products are eligible.

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

Additional Information
Visit http://www.energystar.gov. The IRS will issue additional specific guidance soon. Check http://www.irs.gov for updated information. Circumstances vary widely, so consumers should consult with their tax adviser for further guidance.

How To Apply

1. Complete your project between January 1, 2009, and December 31, 2010.
2. Save your itemized receipts (if you are working with a contractor, be sure to ask for an itemized bill that separates materials costs from other costs).
3. Save all NFRC labels.
4. Print a copy of the Manufacturer’s Certification Statement, available on the various manufacturers’ websites.  Ring’s End can help you with this step.
5. Fill out IRS form #5695 and submit it along with your Federal tax return. You need not submit the purchase receipts, the NFRC labels, or the Manufacturer’s Certification Statements to the IRS, but keep them with your tax records.
    IRS form #5695 for 2009 (107.21 Kb)

Connecticut Sales and Use Tax Exemptions
The State of Connecticut has enacted legislation to extend permanently the sales and use taxes exemptions for residential weatherization products. This is a direct savings to you at point of purchase: Ring’s End will not charge sales taxes on qualifying products. We carry the following types of products eligible for these exemptions:

• Insulation (for example, attic and wall insulation, spray foam insulation, water pipe insulation, heating duct insulation, switch and outlet insulators)
• Windows that meet the Federal Energy Star standard (storm windows are not included in this exemption)
• Doors that meet the Federal Energy Star standard (storm doors are not included in this exemption)
• Draft-preventing caulking, such as window and door caulking
• Window and door weather strips, including door sweeps
• Programmable thermostats

If you’re remodeling or renovating your home, consider selecting products that qualify for both the Federal Energy Tax Credit and the Connecticut Sales and Use Tax Exemptions.  Your savings can be significant!
Visit the Connecticut Department of Revenue website for more information.