Tax credits for energy-efficient windows and doors aren’t what they used to be — but they’re still going to play a significant role in the replace-and-remodel arena in 2011.
One expert who follows the situation closely is Mark Mikkelson, corporate manager of regulatory affairs for Andersen Windows. In an interview with Home Channel News TV’s 90 Seconds Series, Mikkelson summed up the lower credit amounts and reduced caps. Here are the highlights:
• Gone are the generous tax credits of 30% on window or door purchases. For 2011, the amount of the tax credit is 10% of the purchase.
• Instead of a $1,500 maximum cap on the tax credit, the new caps are reduced to $200 for windows and skylights, and $500 for exterior doors.
• The caps are combined — in other words, if a consumer receives $200 for a window, there is only $300 remaining under the cap for doors.
• The current caps also apply to the lifetime of the customer — if they received credits in previous years, those apply toward the cap.
“We still expect to see a boost, and we will still come out and promote this,” Mikkelson said. “Though it may not have quite the impact that a 30% and $1,500 tax credit had in 2009 and 2010.”