Replacing a garage door in 2010 won’t just add style and curb appeal to your home – it can also save you money off the bottom line (up to $1500) of your income taxes.
The stimulus legislation signed by President Obama on Feb, 17, 2009 provides tax credits for energy-efficient home improvements, including qualifying insulated garage doors. 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.
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:
- The tax credits are available for garage door purchases “placed in service” from Jan. 1, 2009, through Dec. 31, 2010.
- Your 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 amount a taxpayer may claim is $1500 over the lifetime of the tax credit.
- The door must have a U-factor (rate of heat loss) equal to or less than 0.30. Ask your professional dealer/installer if your door qualifies. You will need a manufacturer’s certification statement and a breakdown of the material and labor costs.
- The door must be an insulated residential garage door.
- It must be installed on an insulated garage. The envelope of the space must be insulated including walls and ceiling space.
- The door perimeter must have a means to control air infiltration (hot/cold mechanical ventilation).
- 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.
Insulated garage doors can make a noticeable difference in the temperature of your home. If your home has an attached garage, chances are the room next to your garage is one of the coldest rooms in the winter. Cold air in the winter (and warm air in the summer) can sneak in through the garage and into your home, increasing the amount of energy your home needs for heating and air conditioning. In addition to saving homeowners money and energy, new garage doors can be a stylish way to improve a home’s appearance and value.
For more online information on the garage door tax credit, check out:
American Recovery and Reinvestment Act of 2009 – http://frwebgate.access.gpo.gov
Energy Star’s Comments about the Tax Credit & Garage Doors – http://www.energystar.gov
First United Door Technologies Home Page – http://www.firstudt.com