But the good news carries a caveat: The government not only upped the amount of money that homeowners can take as a tax credit — from $500 to $1,500 on a one-time basis, with no $200 subcap for windows, as previously — it also raised the standards that qualify windows for that credit.
To qualify for the $200 tax credits available in 2006 and 2007, windows had to be Energy Star-rated and bear the Energy Star label. Under the new legislation, windows must have a .30 or less U-factor and a .30 or less Solar Heat Gain Coefficient.
U-factor is a measure of the heat flow through the window. The lower the U-factor, the more efficient the unit. Solar Heat Gain Coefficient (SHGC) is the percentage of heat gained from both direct sunlight and absorbed heat. The smaller the SHGC, the greater the window’s ability to reduce the solar heat gain of the home.
Unless the windows that homeowners buy meet the “30/30” criteria, they aren’t eligible for tax credits. To get those credits, come tax time consumers must submit IRS form 5695, along with a receipt for the window purchase and manufacturer labels for every window.
Not a Done Deal
The American Architectural Manufacturers Association, a window manufacturers group, opposes the new standards for several reasons. Its president, Rich Walker, calls 30/30 “somewhat arbitrary” and points out that the previous standards were arrived at only after years of idea-sharing between AAMA and the Department of Energy.
In addition, Walker objects to the “one-size-fits-all” nature of the new criteria, given that windows perform differently in different climates and are manufactured accordingly. When it comes to fenestration products, he says, “Different climates require different performance parameters to be considered energy efficient.” Other Energy Star products such as hot water heaters “perform the same, regardless of climate.” AAMA is now seeking to persuade Congress to revert to the Energy Star standards for tax credits.
For installing retailers, all that matters is whether the windows they have qualify. And if they don’t, when can they? Garcia says that his company, which manufactures its own windows, is right now swapping out the glass packs on its double-pane products to bring them into conformity with the new standards.
“All our vinyl windows qualify,” says Windowizards’ vice president David Goodman, though the company carries both wood and vinyl windows. Goodman says that his sense was that Congress “rushed” the legislation through and caught many window retailers and manufacturers unprepared.
“The range of what’s out there is anywhere from .35 to .25 U-factor, and that’s a big difference. Everybody got caught off-guard.”
