The tax credit available to homeowners as part of Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law December 17, 2010, extends certain energy efficient tax credits for qualifying windows, skylights, and exterior doors for a period of one year.

Windows, skylights and exterior doors that meet the ENERGY STAR rating are eligible for the credit.  The tax credit is $200 for windows and skylights and $500 for exterior doors.  The maximum credit for all taxable years for qualifying products is $500 - no more than $200 of the credit can be attributable to expenses for windows and skylights.

Ten percent of the purchase price of the product is eligible up to the maximum allowance. Installation labor and materials can not be included.

The new tax credit begins January 1, 2011 and expires December 31, 2011.  Purchasers of qualifying windows, skylights and exterior doors must have them installed in their principal residence by December 31, 2011.   

If you have already taken advantage of the 2006 - 2010 programs, you can not apply for incentives that exceed the cap. For example: if you claimed $500 in 2006 for a qualifying exterior door, the tax credit is exhausted, if only $300 was claimed in 2009, $200 can still be claimed for a maximum of $500.

For more information on the current energy tax credit visit http://www.energystar.gov/index.cfm?c=home.index