Tax Breaks For Energy Efficient Products

The federal government is currently enticing homeowners to be energy-conscious with tax credits of up to $500 when they choose energy efficient building products for home-improvement projects. The credits are not available indefinitely, however - only for upgrades made until Dec. 31, 2007.

The easiest way for homeowners to cash in on the tax credits is to look for companies that supply ENERGY STAR® qualified products.

JELD-WEN, the world's leading manufacturer of reliable windows and doors, offers several product lines that provide maximum energy savings to reduce energy bills and meet the criteria for the tax credits. For example, all JELD-WEN Wood and Clad-Wood windows come standard with Low-E glass, which helps rooms stay warmer in winter and cooler in the summer. Also, JELD-WEN® IWP® Aurora® Custom Fiberglass Exterior doors, which perform exceptionally well in all climates and temperatures, are approved for ENERGY STAR labels.

Experts say replacing inefficient windows and doors is a good first step toward reducing energy costs. In addition to lower monthly utility bills, households that take advantage of the new tax credit opportunity will see significant savings when tax time rolls around. Unlike a tax deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the amount of income tax you have to pay.

Specifically, the tax credit for replacing exterior windows is 10 percent of the product cost, up to $200. The credit for exterior doors is 10 percent of the product cost, up to $500. The maximum amount of homeowner credit for all improvements combined is $500 during the two-year period.

"Replacing doors and windows is an effective way to maximize energy savings for the long term," said Brian Hedlund, product marketing manager at JELD-WEN. "Research shows that homeowners who replace single-pane glass windows with ENERGY STAR qualified products can save $125 to $340 on energy costs annually. Combine that amount with the new tax credits and the savings can quickly add up for homeowners when they make their houses energy efficient."

Understanding Energy-Efficient Options for Windows and Doors
With the increasingly high price of gas and oil, consumers are receptive to energy efficient products in preparation for a winter season. According to The Shelton Group, Energy Pulse 2005 study, "Americans want to help conserve energy. They just want it to be easy to do. They want to do it through buying more energy-efficient products, not changing their behavior." The same study reveals 78 percent of U.S. consumers would choose one home over another based on its energy efficiency.

Here are some tips to understanding energy-efficient options for windows and doors:

Look for Low-E glass.
As an ENERGY STAR partner since 1998, JELD-WEN offers a number of energy-efficient options for homeowners. Chief among them is Low-E glass for windows and doors. Low-E, or low emissivity, refers to a transparent metallic coating applied to one surface of insulating glass. In the winter, Low-E reflects some of the interior heat back into the home. In summer, Low-E glass reduces the amount of the sun, heat from entering the home, lowering cooling needs. Low-E glass comes standard in numerous JELD-WEN products.

Understand U-factor ratings.
Window and door energy efficiency is determined by U-factor, which denotes the amount of heat flowing through a product. The lower the U-factor number, the more energy efficient the product is. This rating appears on standardized labels applied to window products.

Select ENERGY STAR qualified products.
The easiest way to determine whether or not windows and doors meet the highest energy-efficiency standards is to look for the ENERGY STAR label.

Consider long-term value versus initial purchase price.
Beyond the initial purchase price of a product, consider long-term value. That's what homeowners pay year after year to operate and maintain a product. Energy-efficient products offer measurable, annual savings. In addition, choosing products that will perform reliably can save thousands of dollars on replacement and repair expenses over time.