As a property owner in the US, you’re likely aware of the many tax deductions and rebates available to you. However, when it comes to hurricanes, there are a few specific deductions and rebates you may be able to take advantage of.
But can you get a tax deduction for hurricane or impact windows?
This post will detail everything you need to know about hurricane windows and tax deductions. So, read on to learn more.
Are Hurricane Windows Tax-Deductible?
You can get tax deductions and rebates for hurricane windows if they meet Energy Star standards. The deduction is typically 10% of the cost of the windows, with a maximum of $200 per window. There are also rebates available from many utility companies for energy-efficient windows.
Are Impact Windows Tax-Deductible?
Impact windows are tax-deductible. However, the windows must meet Energy Star standards to be eligible. For example, the windows must be energy-efficient and double or triple-pane with inert gasses between them.
Energy Star is a voluntary program created by the US Environmental Protection Agency in 1992. It helps businesses and individuals save money and protect the environment by reducing energy consumption. A product must meet strict energy efficiency guidelines to be Energy Star-certified.
Requirements for an impact window to be Energy Star-certified include:
- The window must have double or triple panes with an inert gas between them – the gas helps reduce heat transfer and makes the window more energy-efficient.
- It must have a low-E coating – the invisible coating reflects heat into the room, keeping it cooler in summer and warmer in the winter.
- The frame must have insulation – that helps reduce heat transfer and makes the window more energy-efficient.
- The window must have a U-factor of 0.30 or less – the U-factor measures how well it prevents heat from escaping. So the lower the U-factor, the better the product prevents heat from escaping.
As a result, products certified by Energy Star are often more expensive than their non-certified counterparts. However, the extra cost is often offset by energy bill savings.
Note: Impact windows can help to reduce energy consumption in many ways. For example, they can help keep homes more relaxed in the summer and warmer in the winter, meaning that homeowners will use less energy to heat and cool their homes.
In addition, these windows can also help to reduce noise pollution and UV light damage.
As a result, choosing impact windows that are Energy Star-certified can help you save money on energy bills while also helping protect the environment.
How Hurricane Window Tax Deductions Work
Hurricane window tax deductions work by deducting a percentage of the cost of the windows from your taxes.
For example, if you install hurricane windows that are more energy-efficient than standard windows, you can deduct 10% of the cost of the windows from your taxes. The maximum deduction is $200 per window.
Therefore, installing ten energy-efficient windows can deduct up to $2,000 from your taxes. To take the deduction, you must itemize your deductions on your tax return. Doing that allows you to deduct certain expenses incurred during the year.
What Types of Hurricane Windows Are Tax-Deductible?
The types of hurricane windows that are tax-deductible are those that meet Energy Star standards. These windows are designed to be more energy-efficient than standard windows.
In addition, the windows must be installed correctly, as per the manufacturer’s instructions. You must also install the windows in a way that meets or exceeds local building code requirements.
Here are a few tips for choosing the right windows to meet tax reduction requirements:
- Select windows with a low solar heat gain coefficient (SHGC) – SHGC measures the amount of heat from the sun a window can block. An insufficient amount will help keep your home cooler in the summer and reduce your AC costs.
- Choose windows with high visible transmittance (VT) – the VT measures how much light a window lets in. A high VT will help keep your home brighter and reduce lighting costs.
- Look for windows with a low air leakage rate – the air leakage rate measures how much air leaks through the window. A modest leakage rate will help reduce your heating and cooling costs.
The following video provides more insights into how to pick energy-efficient windows:
What Is the Hurricane Window Tax Deduction Limit?
The hurricane window tax deduction limit is $200 per window. That means you can deduct up to $200 for each energy-efficient window you install in your home. The deduction is available for windows and skylights, which can help you save money on your energy bills.
As mentioned, the windows must meet specific criteria, such as being certified by the Energy Star program, to qualify for the deduction.
If you install windows that meet the criteria, you may still be able to claim a credit of up to 10% of the purchase price, up to a maximum of $200.
Do I Need To Itemize My Deductions To Claim a Hurricane Window Deduction?
It would be best to itemize your deductions to claim a hurricane window tax deduction. The deduction is taken as an itemized deduction on Schedule A of Form 1040.
That means you can’t take the standard deduction on your taxes. Instead, you have to list all of your deductions on your tax return.
However, the good news is that you can deduct various expenses from your taxes, not just the cost of hurricane windows. For example, you can deduct the interest you paid on your mortgage, property taxes, and charitable donations.
What Records Must I Keep for My Hurricane Window Tax Deductions?
The records you need to keep for hurricane window tax deductions include receipts, invoices, canceled checks, and any other documentation that shows you paid for the windows. You should also keep a copy of the manufacturer’s certification statement for each window.
Here’s a rundown of the records you need to keep and their significance:
Purchase Receipts or Invoices
Any time you purchase windows for your home, be sure to keep the receipts or invoices. You will need these records to calculate the deduction when it comes time to file your taxes.
The purchase price and date of purchase are both essential pieces of information. Without them, you will not be able to take the deduction.
So be sure to keep all your documents in a safe place and create a system for organizing them so that you can easily find what you need when tax season rolls around.
In addition to receipts and invoices, you should keep canceled checks or records showing you paid for the windows.
The canceled check will have the date of purchase, the name of the vendor, and the amount you paid. That information is essential for taking the deduction.
Besides, canceled checks provide valuable backup documentation in case you lose receipts or invoices. So it’s a good idea to keep them on hand.
Manufacturer’s Certification Statement
Each window must have a certification statement from the manufacturer that certifies the window meets Energy Star standards. Keep a copy of this statement for each window in your home.
These statements are usually available on the manufacturer’s website. However, you can generally request them from the company if you can’t find them there.
Copies of Any Permits or Inspections
You may need to provide copies of any permits or inspections required when you installed the windows. For example, some jurisdictions require permits for any work on a home’s exterior, such as glazing or installing windows.
If you are unsure whether or not a permit is required, check with your local building department. It will tell you what you need for your area.
How To Apply for the Hurricane Window Rebate
Now that you know what you need to apply for the deduction let’s look at the application process. After all, the sooner you apply, the sooner you’ll get your rebate check!
The application process is relatively simple and can be done in just a few steps:
Gather Your Proof of Purchase
The first step is gathering your proof of purchase for the windows.
- Canceled checks (or other records of payment)
- Manufacturer’s certification statement for each window
Fill Out the Application
After you gather all your documentation, the next step is to fill out the application. You can get the form from your utility company or download it from its website.
You must complete the form in full and sign it before submitting it.
Some of the details you will need to provide include:
- Your name
- Your current address
- Your contact information
- The date of purchase for the hurricane windows
Note: You may also need to provide a detailed description of the windows, including the make, model, and size.
Include Documentation of Your Purchase
In addition to the completed application form, you will need to include documentation of your purchase. That consists of the proof of purchase that you gathered in step one.
These documents are crucial to processing your rebate, so ensure you include them all.
Submit the Application
After you have gathered all the required documentation and filled out the application form, the next step is to submit it. You can do that by mail, fax, or online (depending on your utility company’s preferences).
Remember to keep a copy of everything you submit for your records. Otherwise, you may have trouble if there are any problems with your application.
Wait for Your Rebate Check
The last step is to wait for your rebate check to arrive. The utility company will process your application and send you the rebate check within six to eight weeks.
If you do not receive your check within that time frame, you should contact the utility company to inquire about the status of your application. You can call or visit its office to speak with a customer service representative.
It’s a good idea to have all your documentation on hand when you inquire, just in case of any problems with your application.
Tip: If you need additional resources for learning about hurricane windows tax deductions and rebates, be sure to check out these sites:
- DSIRE USA: The Database of State Incentives for Renewables & Efficiency provides information on incentives and policies that promote renewable energy and energy efficiency.
- Energy Star: This site provides information on products, buildings, and practices that save energy and money and protect the environment.
- IRS: The Internal Revenue Service provides information on federal tax incentives for energy efficiency.
Extra Tip: To secure your windows, use these HURR-PRO Universal Hurricane Window Clips from Amazon.com.
They’re made of heavy-duty stainless steel for maximum strength and durability, easy to install, and adjustable to fit various window sizes, making them the perfect solution for your hurricane window needs!
When Can I Expect My Hurricane Window Rebate Check?
Expect your rebate check to arrive six to eight weeks after submitting your application. If you do not receive it within that time frame, you should contact your utility company to inquire about the status of your rebate.
The company will tell you if there is any processing delay or other issues with your application. In most cases, you should receive your rebate check within a few weeks after contacting the company.
Note: Here are a few things that may cause delays in processing your rebate:
- Incomplete or inaccurate information on your application – ensure you complete all the required fields and that the information you provide is accurate.
- Missing documentation – be sure to include all the required documentation, such as receipts, invoices, canceled checks, manufacturer’s certification statements, and permits or inspections (if required).
- Ineligible windows – only windows that meet Energy Star standards are eligible for the rebate. So be sure to check that your windows meet those standards.
- Missing signatures – ensure you and the contractor who installed the windows both sign the application.
- Incorrect mailing address – be sure to provide the correct mailing address on the application so that the utility company can send you the rebate check.
Installing hurricane windows can save you money on energy bills and may even help protect your home in a storm. And, thanks to the hurricane window tax deduction, you can get a rebate on a portion of the cost of those windows.
Make sure you gather all the required documentation and complete the application form correctly to get your rebate check without any delays. Remember, the sooner you apply, the sooner you’ll get your money!
- IRS: Energy Incentives for Individuals: Residential Property Updated Questions and Answers
- Energy Star: Nationwide Incentives
- DSIRE: Database of State Incentives for Renewables & Efficiency
- IRS: About Schedule A (Form 1040), Itemized Deductions
- Taylor & Francis Online: Light Transmittance Characterization and Energy-Saving Analysis of a New Selective Coating for In Situ Window Retrofit
- ALCO Windows and Doors: Are Impact Windows Tax-Deductible?
- US Department of Energy: Guide to Energy-Efficient Windows