Save $$ on Energy-Efficient Windows & Doors if You Buy by 12/31
Energy-efficient doors and windows save money by keeping cold air out in winter and warm air out in summer. Replacing old doors and windows with energy-saving ones is affordable if you take advantage of federal and state tax credits that allow you to deduct a percentage of the replacement cost from your taxes.
The federal tax credits run out on December 31, 2010; if you want to upgrade, doing so now will save you the most money.
How much?
You can take a 30% tax credit up to a total value of $1,500. In other words, you can spend up to $5,000 on a single or multiple products for your principal residence (the one you own and live in), and get 30% or $1,500 (30% of $5,000 = $1,500) back as a tax credit. If you made some of your purchases in 2009 and some in 2010, you can combine the total, but you can't get more than $1,500 in tax credits on the total purchase.
Of course, once you make the investment, the new doors and windows will also reduce your heating and cooling bills. Your local contractor should be able to help you estimate savings depending on what you buy, the HVAC system you use, and the climate where you live.
In addition to insulating windows and doors, purchases covered by the 2010 tax credits include:
*biomass stoves (those that burn wood or corn pellets, for example)
*heating, ventilating and air conditioning systems
*insulation
*metal or asphalt roofs that reflect the sun's rays, lowering a home's temperature
*non-solar water heaters
The $1,500 maximum does not apply to geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators. These are all eligible for a 30% tax credit with no upper limit, in addition to whatever tax credits you claim on windows.
For example, you can get $1,500 back for new windows, and $3,000 back for a new geothermal heat pump - for a total tax credit of $4,500.
NOTE: These are "non-refundable" tax credits so you can't get more back in tax credits than you pay in federal income tax.
Here is more information on Federal energy tax credits. You can look here to see what's available in your state.
Whether you replace your doors and windows or not, these additional tips will help you save energy this winter.