Are there any tax credits or rebates available for ENERGY STAR qualified windows?

Thanks to the federal Energy Policy Act of 2005, homeowners in the US can claim tax credits if they upgrade their primary residence with energy efficient building components, including exterior windows, in 2006 and 2007.  Ten percent of the window purchase price, up to a maximum of $200, can be deducted from the home owner’s income tax.  IRS Form 5695 and documentation from the window manufacturer is required to request this tax credit.

In addition, the State of Connecticut declared a sales tax exemption on home weatherization products purchased between June 1, 2006 and June 30, 2007.  If you purchase low-e windows or doors, caulking, window film, or window and weatherstrips, during this time period, no sales tax will be charged.

Additional programs available to assist with window purchase costs, worth investigating, are:

• WRAP Weatherization Program by Connecticut Light & Power (CL&P) for customers who use more than 2,000 kilowatt-hours of electricity a year with a household income at or below 60 percent of the state median income qualify for free inspection of windows, weatherization stripping and other relevant parts of the home (www.cl-p.com/clmres/energy/wrap.asp).
• Energy Conservation Loan Program from the Connecticut Housing Investment Fund offers loan financing for home renovations (including windows) with up to $15,000 for single family homeowners and up to $2,000 per unit for owners of multifamily property (www.chif.org/owner_borrowers/index.shtml#energy)
• Massachusetts Residential Conservation Services Program provides information on in-home programs, incentives, and rebates towards the installation of ENERGY STAR® qualified equipment and products offered by Massachusetts member utility companies (www.masssave.com).
• If these programs don’t apply to you, check with your utility company for local resources or visit www.energystar.gov for listings by state.  Contractors in your state who participate in a locally-sponsored Home Performance with ENERGY STAR program can help you cost-effectively improve your home’s energy efficiency. These specially-trained contractors evaluate your home using state-of-the-art equipment and recommend comprehensive improvements that will yield the best results. They can also help you take advantage of Federal tax credits for energy efficiency improvements.