The tax credit in effect for 2011 is an extension of previous tax credits; however, there are important changes to the 2011 tax credit, including changes in the qualifying criteria, lower credit amounts, and lifetime caps including all previous tax credits.

How to qualify for the Tax Credit:**

1. Purchase and install qualifying Andersen® windows or doors that meet ENERGY STAR® Windows Program Version 5.0 performance requirements beginning January 1, 2011 through December 31, 2011.**

2. Save your sales receipt, a copy of Andersen's Manufacturer's Certification Statement, and product performance (NFRC Ratings/ENERGY STAR Qualification 200 Series & 400 Series, A-Series or 100 Series) sheet with your tax documents.

3. Claim the tax credit associated with your qualifying purchase and installation on your Federal filing for the 2011 tax year.

Limitations:

1. Tax credit is for the cost of the product only – the credit does not include installation costs.

2. Tax credit is 10% of the amount paid up to the maximums listed below.***

3. $500 total maximum tax credit for any and all improvements. (Including other eligible items as listed in the IRS Notice.)
    • $200 total maximum tax credit for qualifying windows and skylights.
    • $500 total maximum tax credit for doors, if windows or skylights are not used.

4. If a combination of windows, skylights and doors are purchased, the total maximum credit is $500, of which $200 is the maximum allowable for windows and skylights.

5. The tax credit is an extension from the original tax credits from 2006/2007, and 2009/2010, which means the $200 and $500 and $1,500 credits are a lifetime maximum credits. A homeowner who has already used up the $200 or $500 credit from the 2006/2007 tax credit, or the $1,500 tax credit from 2009/2010, is no longer eligible for this tax credit extension.

1. Buy/Purchase an ENERGY STAR qualified Pella window or door.

2. Install
Install your qualified Pella window or door in your principal residence after January 1, 2011, and before December 31, 2011.

3. Keep
Retain the NFRC label from each product along with the sales receipt. Use these when you prepare your taxes.

4. Download

Download a Pella Manufacturer's Certification Statement for your records.

What's Included

• Price of the unit

• Factory and branch-finished stain and paint

• Shades/blinds, grilles, jamb extensions, etc., inside the glass if installed at the factory

What's Not

• Cost of installation including, on-site preparation and on-site assembly

• Sales tax

Owners of existing homes can receive tax credits of up to 10% of the cost of components when upgrading the efficiency of their building's envelope. Components eligible for the credit include insulation materials and systems (including vapor retarders) designed to reduce heat loss or gain in a home. The total amount of credits for building envelope measures and other qualified energy-efficiency improvements has been returned to the original maximum of $500. To qualify, a component must meet or exceed the criteria established by the 2003 International Energy Conservation Code (including 2004 supplements) and must be installed in the taxpayer's primary residence in the United States between January 1, 2011 and December 31, 2011.

To help you determine how much insulation you will need, consult with Sparling Construction, which can provide the current minimum International Energy Conservation Code (IECC) levels.

Note that the credit applies only to the cost of the product and does not apply to the labor/installation of materials or systems - be sure to keep all your receipts and/or ask Sparling Construction to itemize the product costs for you.

Download the form here, complete and keep it with your tax records. When completing your taxes, use IRS Tax Form 5695 (version 2010). This form is available at www.irs.gov.

There are many additional financial incentives for making your home more energy-efficient, including rebates, grants and loans.