If enacted, the bill will link the 25(c) fenestration tax credits to 2010 ENERGY STAR® Program Requirements for Residential Windows, Doors, and Skylights, Version 5.0 (or any subsequent version of such requirements which is in effect after January 4, 2010). The tax credit is currently tied to the .30 U-factor/.30 SHGC threshold thought of as somewhat arbitrary by many industry professionals.
“We’re extremely pleased to see this legislation emerge as it benefits not only manufacturers of fenestration products, but also consumers,” said Rich Walker, American Architectural Manufacturers Association (AAMA) president and CEO. “Replacing the .30/.30 standard with the ENERGY STAR standards simplifies the process of purchasing fenestration products for the home, and of obtaining the tax credit for purchasing energy-efficient products.”
The $1,500 tax credit which was included in the American Recovery and Reinvestment Act currently limits the tax credit to the purchase of windows and doors which are equal to or below a U-factor of .30 and SGHC of .30.
The Job Creation and Tax Cut Act states that from the day the legislation is signed into law through 90 days after the passing of the legislation, both products that meet the .30/.30 standard as well as ENERGY STAR-labeled products will qualify for the tax credit. After this 90 day period, only ENERGY STAR-labeled products will qualify.
“The current .30/.30 ‘single value’ approach ignores years of development through a partnership between ENERGY STAR and manufacturers who worked collaboratively to develop performance criteria which made it possible to design the appropriate frame and glass technology to achieve maximum energy efficiency throughout the United States,” says Walker. “AAMA has remained steadfast in pressuring Congress to support this amendment. As the tax credit will expire on December 31st, 2010, our objective is to now request Congressional support of an extension of the credit linked to the widely accepted ENERGY STAR criteria.”