Check out the full article by Professional Remodeler magazine.
How do I know which products qualify for the tax credits?
One of the most confusing thing about the credits is that not all products — not even all Energy Star products — qualify. There are minimum requirements in each product category. For example, windows must meet a higher standard of a U factor and a Solar Heat Gain Coefficient (SHGC) of less than .30. For a full list of product standards, visit www.energystar.gov/taxcredits.
Can homeowners receive the credits if the new products are installed in an addition?
Yes. While it initially seemed that additions would not be eligible for the credits because the products would not be an “improvement” to an existing building, the IRS recently confirmed that products used in an addition can be used to claim the full tax credit.
What do remodelers need to provide clients so they get the credits?
You should give your clients a detailed receipt, along with what the IRS is calling a “Manufacturer’s Certification Statement.” This should include the name and address of the manufacturer; identification of the type of product; make, model and any other identifiers of the specific product used; and a statement that the product is eligible for the tax credit. The homeowners do not need to file the statement or receipt with their taxes but should have them for their records in case of an audit.