Use energy-efficient windows and save more with energy tax credits

As part of the American Recovery and Reinvestment Act of 2009 recently signed into law, there are several energy conservation incentives for homeowners, including a never better opportunity to install energy-efficient replacement windows.

There are lots of good reasons to consider replacing windows. Energy-efficient windows can help lower your monthly energy bills, while making your home more comfortable to live in. High-quality replacement windows can also add to the resale value of the home and result in an immediate reduction of heating and cooling bills. Replacement windows also require little maintenance and can add to your home's curb appeal.

Taxpayers purchasing replacement windows in 2009 and 2010 that meet specific energy efficiency requirements, they are eligible for 30% of the amount as a tax credit. This credit is capped at $1,500 for the years of 2009 and 2010.

To be eligible for the energy tax credits, windows purchased must be equal to or below a U Factor of 0.30 and a Solar Heat Gain Coefficient (SHGC) of 0.30. U Factor is the amount of heat transferred through a material. The lower the U-value, the slower the rate of heat flow and the better the insulating quality of the window. Solar Heat Gain Coefficient (SHGC) is the percentage of heat gained from both direct sunlight and absorbed heat. The smaller the number, the greater the ability to reduce solar heat gain into the home.