Says 30/30 Will Not Go into Effect Until June 1
May 1, 2009
On April 22, the Internal Revenue Service (IRS) issued a news release
about the tax credit for energy efficiency home improvements (CLICK
HERE for that announcement), stating that the previous tax credit
for doors, windows and skylights will carry over until June 1, 2009.
This is known as the "Safe Harbor" provision.
According to the IRS, under the old tax credit, doors, windows
and skylights had to meet or exceed the prescriptive criteria established
by the 2001 Supplement of the 2000 International Energy Conservation
Code (IECC) or the 2004 Supplement of the 2003 IECC for the climate
zone in which the product is installed. Either ENERGY STAR labels
or manufacturer certification statements were required to document
these requirements for windows and skylights; doors were required
to have a manufacturer certification statement. These performance
terms and certification requirements will continue until June 1,
2009. The monetary terms of the current tax credit still apply to
all door, window and skylight purchases made in 2009 and 2010.
The IRS clarifies that this is not a change in the tax law: As
of June 1, all products must meet the U-factor and solar heat gain
coefficient (SHGC) maxima of 0.30. The agency also notes that this
is not the revised guidance document, which constitutes the final
word from the IRS on how the tax credit will be implemented. The
IRS plans to issue the revised guidance document later this spring,
according to the Department of Energy (DOE).
USGNN.com has been following this issue closely and was in attendance
last week when members of the Northeast Window and Door Association
met with Sen. Olympia Snowe's office regarding the 30/30 criteria.
During that meeting, Patrick Woodcock, Snowe's legislative assistant,
made no mention of this IRS statement, and told NWDA members that
the 30/30 requirements were effective as soon as the stimulus act
was signed into law. USGNN.com has contacted Woodcock for further
information. Stay tuned to usgnn.com for further updates. (CLICK
HERE for a full report of last week's meeting with Snowe's office.)
Richard Karney, DOE program manager, who was also in attendance
at the April 23 NWDA meeting (he participated in an educational
session that morning. CLICK
HERE for that story.) had no knowledge at the time of the April
22 IRS statement. The DOE, however, did issue an alert to ENERGY
STAR stakeholders today regarding this change.
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