Homeowners who purchase an energy efficient garage door before the end of the year will not only save on their heating bills this winter, they may qualify for up to $1,500 in federal tax credits on their 2009 return, thanks to the stimulus legislation.
The tax credit is equal to the sum of 30 percent of all qualified energy saving improvements, which includes garage doors, installed in an existing home from January 1, 2009 to December 31, 2010. For instance, if two new garage doors cost is $2,000, the applicable homeowner tax credit is $600.
The credit applies to the product only (not labor) and the maximum credit for all of the improvements combined is $1,500.
A tax credit is more valuable than an equivalent tax deduction because it reduces tax dollar-for-dollar, while a deduction only decreases the amount of income that is taxed.
Garage doors must meet the following criteria to qualify:
- The door must be an insulated residential garage door placed in service from January 1, 2009 through December 31, 2010.
- The door must have a U-factor equal to or less than 0.30 and there must be a means to control air filtration at the door perimeter.
- The door must be expected to remain in service for at least five years.
- The garage must be an insulated space and part of the taxpayer’s principal U.S. residence.
Professional garage door dealers and retailers should provide a manufacturer’s certification statement for all qualified insulated garage doors along with a breakdown of the cost of the door(s) and the cost of labor at the time of installation. Homeowners do not need to submit a copy with their tax return, but should keep a copy for their records.
Replacing an older garage door with a new, energy efficient model can reduce energy loss through the garage by up to 71%, according to a comparison study conducted by engineers at Clopay Building Products, the nation’s largest manufacturer of residential garage doors.
Here are some things to look for when making an upgrade:
- 2”- thick three-layer ”sandwich” construction – environmentally safe, CFC-free insulation layered between two sheets of heavy-duty galvanized steel.
- R-value or U-factor – these are measurements of the thermal efficiency of a garage door’s insulation. The higher the R-value, or the lower the U-factor, the more energy efficient the door.
- Insulation type – There are two different types of garage door insulation: expanded polystyrene and polyurethane. Doors constructed from either type qualify for the Energy Tax credit, and both are strong and durable.
- Design – Get the most out of your garage door upgrade. Choose a model that complements your home’s architectural style.
More details are available at www.clopaydoor.com and www.energystar.gov.
Tax Tip: Garage Door Upgrade May Qualify for up to a $1,500 Credit on 2009 Return