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Information on 2009 and 2010 Garage Door Tax Credits
Insulated garage doors offer energy savings, tax credit and style
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HE U.S. government is offering financial incentives to homeowners to buy qualifying insulated garage doors.
Under the stimulus legislation signed by President Obama on Feb, 17, 2009, tax credits for energy-efficient home improvements have been extended and increased significantly. That means that adding a new garage door in 2009 or 2010 can save you money by helping to lower home energy consumption and costs, AND it will help pay for itself this year through the tax credit incentive.
Important details regarding the tax credit:
- The new tax credits are available for qualifying garage door purchases "placed in service" from Jan. 1, 2009, through Dec. 31, 2010. Garage door purchases made in 2008 are not eligible for the tax credit.
- The maximum tax credit that a taxpayer may claim from all qualifying improvements combined is 30 percent the cost of each product and $1500 over the lifetime of the tax credit periods (2009 and 2010).
THE TIME TO BUY IS NOW
Homeowners now have another significant reason to buy qualifying insulated residential garage doors – a tax credit. Tax credits are more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only decreases the amount of income that is taxed.
HOW TO IDENTIFY AN ELIGIBLE GARAGE DOOR
To be eligible for the tax credit, the purchased garage door must meet all of the following criteria:
CALCULATING THE CREDIT
- The door must be an insulated residential garage door.
- It must be installed on an insulated garage.
- The door must have a U-factor equal to or less than 0.30, even if the door contains glazing.
- If the door contains windows (glazing), the door must offer a Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.
- The door perimeter must have a means to control air infiltration.
- The door must be expected to remain in service for at least five years.
- The garage must be part of the taxpayer's principal U.S. residence.
- Dealers should provide homeowners with a Manufacturer’s Certification statement and a breakdown of the material and labor costs.
The homeowner's tax credit is based on the total material cost of the purchase (the cost of installation does not qualify). The tax credit is equal to the sum of 30 percent of all qualified energy-saving improvements installed in an existing home in the calendar years of 2009 and 2010. The maximum credit is $1500.
For example, if a homeowner paid $2,500 in material costs for two qualified insulated garage doors, that individual would be eligible for a $750 tax credit. If the material costs were $1,000, the tax credit would be $300.
A CHANCE OF A LIFETIME
The tax credit essentially gives the homeowner a 30 percent savings off the material cost of the door. If additional incentives are offered by your dealer, the savings could be even more attractive.
This kind of opportunity may never happen again in your lifetime. How often has the government helped you purchase a garage door or upgrade your home? If you play your cards right, this tax credit promotion can help you make the improvements to your home that you never dreamed you would be able to in a down economy.
For more online information on the garage door tax credit, check out:
Tax Credits Available for Qualifying Garage Doors Purchased in 2009 and 2010 – GarageWowNow.com
Text of the American Recovery and Reinvestment Act of 2009 [PDF download]. See pp. 208-210, Sect. 1121
About the Manufacturer’s Certification Statement
Energy Star’s Comments About the Tax Credit
Energy Star’s Comments About Garage Doors
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