Energy Efficiency Improvements

Exterior windows and doors, including sliding glass doors and skylights. Tax credits up to 30% of the cost are available for qualifying improvements purchased and installed after June 1, 2009 and up to 10% of the cost if installed during 2011. Windows installed during 2011 are limited to a $200 maximum credit. They must conform to two key energy-efficiency standards, and must be certified by the National Fenestration Rating Council (NFRC). The energy star website (www.energystar.gov) states that the NFRC is the only federally recognized organization for determining the energy performance of windows, doors, and skylights.

Look for the NFRC label which lists:

  1. The manufacturer
  2. Describes the product
  3. Provides a source of additional information
  4. Includes ratings for one or more energy performance characteristics

Qualifying high-efficiency doors, windows, and sky-lights must have U-factors and Solar Heat Gain Coefficients (SHGCs) of 0.30 or under. What do these two ratings mean and why should homeowners care? Here’s how NFRC defines the ratings:

  • U-Factor is the measurement for how well a window or glass door prevents heat from escaping from the interior of the house. U-Factor ratings generally range between 0.20 and 1.20. The lower the U-value number, the greater a window’s or glass door’s resistance to heat flow to the exterior, and the more effective it is in insulating. To qualify for the federal tax credit, U-factors must be at the far low end of the scale (i.e.,highly efficient).
  • Solar Heat Gain Coefficient (SHGC) measures how well a window, glass door, or skylight blocks heat caused by sunlight. It is expressed by a number value between 0 and 1. The lower a window’s solar heat gain coefficient, the less solar heat it allows into the interior of the house. Again, the federal standard of 0.30 or below requires a highly efficient product to qualify.

Roofing –asphalt and metal. Homeowners are eligible for credits of up to 10% of the cost of the materials, but not installation costs, to a maximum of $500. The materials must meet the standards of the 2009 International Energy Conservation Code (IECC), and be rated for a useful life of at least 5 years or come with a 2-year warranty from the manufacturer.

Insulation– The maximum credit for insulations is 10% of the material costs, up to $500. Labor and installation expenses are not eligible. To qualify for the credit, again, the insulation material must meet efficiency standards set by (IECC).

Note: The main purpose of the insulation must be to retain or keep out heat or cold. Products or installations that offer insulation as a side benefit are not eligible. For example, exterior siding for a house that also provides insulation does not qualify, whereas a vapor barrier does.

Resources:

The Internal Revenue Service – www.irs.gov , www.irs.gov/irb/

Energy Star – www.energystar.gov

American Society of Heating, Refrigeration  and Air-Conditioning Engineers www.ashrae.org

2009 International Energy Conservation Code changes www.ckcog.com/Documents/IECC%20Changes.pdf

National Fenestration Rating Council (NFRC) www.nfrc.org

Florida Energy and Climate Commission www.myfloridaclimate.com

Gainesville Utilities: www.gru.com

Orlando Utilities Commission www.ouc.com

 

See related post Home energy efficiency & tax credits

 

teamDoral is a RE/MAX Premier Associates Group. Richard Recuset is a Realtor®,team leader,  Short Sale Agent, Listing Marketing Specialist,Certified Distressed Property Expert (CDPE), and Accredited Commercial Practitioner (ACP), serving the City of Doral, Fl and surrounding areas.

When you hire team DORAL for your real estate needs, you not only have a highly qualified professional on your side, but also access to information, markets, technology and a team of experts from around the world.
You tap into a global network with vast experience in residential and commercial real estate. That network comprises thousands of dedicated individuals, all with just one thing in mind: producing the best possible results for our clients.


*Nothing in this article is intended to solicit listings currently under contract with another broker.  This article offers no legal or tax advice and is for information purposes only.

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