Summary Of Energy Tax Credit Changes For 2011 For Windows, Exterior Doors, And Skylights

January 26, 2011

As you may have heard, energy tax credits for windows, exterior doors, and skylights have been extended for this year though not at the same $1500 level as last year.  On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which extends the energy tax credits through 2011.  However, the levels for these credits have returned back to those that were in effect in 2006 and 2007, which is 10% of the cost of the improvement, up to $500, with a $200 cap for windows.
 
Here are highlights of the 2011 energy tax credit to keep in mind:

• The tax credit does not include installation costs.
• There is a $500 lifetime limit. If you received over $500 in tax credits from 2006-2010, you are not eligible for any more energy tax credits.
• The tax credit applies to Energy Star qualified products.
• The tax credit began January 1, 2011 and ends December 31, 2011.
• Existing homes & new construction qualify.
• Both principal residences and second homes qualify; rentals do not qualify.
• To apply for the energy tax credit, purchasers must

1. Install the qualified product(s) in 2011
2. Maintain receipts and Manufacturer’s Certification Statement for the product(s)
3. File Form 5695 with their 2011 taxes

For additional information on the energy tax credits, visit the Energy Star and IRS websites.

Congress Slashes 2011 Incentives for Home Energy Efficiency Improvements

December 22, 2010

The recent tax bill passed by Congress and signed by President Obama significantly reduces the tax credit incentives for home energy efficiency improvements in 2011. The total tax credit incentive will be capped at $500, rather than $1,500, and anyone who has previously taken advantage of the program can't apply for incentives that exceed $500. In other words, if you have used the full credit between 2005 and now, you can’t take it again. The new credit for installing energy efficient windows is capped at $200.00. The new energy efficient windows must be Energy Star or IECC certified.

December 31, 2010 is the last day to take advantage of the current incentives. In 2010, the tax credit includes 30% of the cost of qualified energy efficient windows and doors, up to $1,500, not including installation costs. To qualify, the windows or doors must be installed by December 31, 2010, in an existing home and principal residence. Installations in new construction or rental homes are not eligible for the tax credit. Remember to keep all you receipts.

Homeowners should take advantage of the current tax saving credits before they expire on December 31, 2010. What a better way to give yourself a Holiday gift.

For more information on the current tax credits go to Energy Star or NAHB

EPA Looking for Input from Millwork Industry on 2013 Criteria Revisions to the Energy Star Program for Windows, Doors, and Skylights

December 1, 2010

D&R International, consultants for the Environmental Protection Agency (EPA), will be holding a conference call on December 6, 2010 for AMD members and others in the millwork industry who would like to share their concerns or learn more about the 2013 criteria revisions to the Energy Star Program for Windows, Doors, and Skylights.

AMD is assisting the EPA in its efforts to collect input and is soliciting comments from AMD membership at this time. The EPA wants to hear from all stakeholder groups impacted by the proposed Energy Star criteria revisions.  So please be sure to mark your calendar and take advantage of this unique opportunity to voice your comments and concerns.

If you are interested in participating in this call, the dial-in information is listed above.

2013 Criteria Revisions

The EPA, in consultation with the Department of Energy, is considering a variety of revisions to current Energy Star criteria in order to meet the requirements of the Six Guiding Principles for Criteria Revision and to address comments raised during the last criteria revision (principles are numbered below and proposed revisions under each principle are bulleted):

(1) Significant energy savings can be realized on a national basis

• Lower U-Factors in most or all climate zones
• Adjust SHGC in some climate zones
• Expand education on shading and orientation

(2) Product performance can be maintained or enhanced with increased energy efficiency

• Establish installation procedures to ensure product performance
• Add minimum air leakage requirement
• Require some form of structural testing

(3) Purchasers will recover their investment in increased energy efficiency within a reasonable period of time

• Develop equivalent performance criteria for impact-resistant products
• Consider industry proposals for a daylighting credit for skylights and Tubular Daylighting Devices (TDDs)

(4) Energy-efficiency can be achieved with several technology options, at least one of which is non-proprietary

• Allow leeway in thermal performance for specialty products (high altitude and impact-resistant)

(5) Product energy consumption and performance can be measured and verified with testing

• Create/Add a blind purchasing program through the National Fenestration Rating Council
• Resolve the outstanding conflict between the physical and simulation test results for TDD U-factor ratings

(6) Labeling would effectively differentiate products and be visible for purchasers

• Maintain or enhance product and display unit labeling
• Bring market share more closely in line with the 25 percent program target

Revisions to Consider

Four revisions proposed worth considering in terms of their direct impact to AMD members who are already Energy Star partners or are seeking to become one are:

1.      Installation Requirement - Could be simply a matter of ensuring availability of proper manufacturer installation procedures and/or Energy Star consumer education on installation, or it could mean requiring products to be installed by a “qualified” installer.

2.      Air Leakage Testing Requirement – This might require certification and labeling.  Do you already test for Air Leakage?  Consider what the additional cost, rollout time, and level of effort for this would be for products seeking or maintaining Energy Star qualification.

3.      Structural Testing Requirement – This might require certification and labeling.  Do you have structural testing conducted in general or just for products tested in high wind regions?  Consider what the additional cost, rollout time, and level of effort for this would be for products seeking or maintaining Energy Star qualification.

4.      Verification Testing - Create/Add a blind purchasing program through the National Fenestration Rating Council (NFRC).  Scheduled to be implemented as a pilot project sometime in the later part of 2011 and phased-in in 2012 (for additional information see the September 23, 2010 Connected article- Enhanced Energy Star Testing and Verification Requirements Beginning 2011).

Please feel free to also contact Jessica Ferris, AMD’s Director of Codes and Standards, at jferris@amdweb.com if you require additional information or have additional questions.

New Release Summary:  California Wood Dust Notification Requirements to Take Effect December 18, 2010

September 14, 2010

The Western Wood Products Association (WWPA) and the Lumber Association of California & Nevada (LACN) are assisting industry in preparing to meet a new requirement under California’s Proposition 65 law, The Safe Water and Toxic Enforcements Act of 1986, that calls for posting consumer and employee warnings about wood dust.  These two organizations are jointly developing signage and other information to meet this new requirement.  They have been working with the California Office of Environmental Health Hazard Assessment and the California Attorney General’s Office to clarify the recommendations and the requirements for communicating the wood dust warnings.  “Wood dust” was added to the list of more than 800 chemicals and other substances on the Proposition 65 list of chemicals and substances that the state of California has listed as causing cancer and birth defects.