Last Updated on December 23, 2011 - Please check back soon for additional updates
Congress Pares Back Tax Credits for 2011
December 17, 2010
Like the Senate on Wednesday, the U.S. House of Representatives passed legislation last night extending the Bush tax cuts for another two years. Expected to be signed by President Obama today, the final bill features a tax credit of up to $200 for Energy Star-qualified windows and skylights and up to $500 for Energy Star-qualified doors for 2011.
Source: www.windowanddoor.com
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2009/2010 ENERGY TAX CREDIT DETAILS
- Tax credit is for the cost of the product only and does not include installation costs. Be sure to ask for a sales receipt that shows the cost of the product only.
- Tax credit is 30% of the amount paid for the product up to a maximum of $1,500 combined for 2009 and 2010 (Including other eligible items listed in the IRS Notice).**
- This is a new tax credit for 2009 and 2010.
Tax Credit vs. Deduction?
The $1,500 tax credit is not a deduction. Deductions are used to calculate your total taxable income. This new tax credit is much more advantageous than a deduction because you apply the tax credit directly to the balance due the IRS on your tax return—or increase your refund. Whether your taxable income for 2009 is $20,000, $75,000 or $1,000,000, you will receive the full $1,500 reduction to your tax payment—or a $1,500 increase to the amount of your refund.