Existing qualifying criteria for the federal tax credit will remain in place through May 31 – a little longer than expected

New qualifying criteria for federal tax credits on the purchase price of windows, doors, and skylights will go into effect beginning June 1.

As noted in a recent National Fenestration Rating Council release, the Internal Revenue Service changed the rollout date for the new criteria, which originally was set for February 17.

Existing qualifying criteria require an Energy Star rating (an SHGC maximum rating of 0.35 to 0.75 and a U-factor maximum of 0.33 to 0.55, depending on the climate zone for each) or a manufacturer certification statement that the product meets or exceeds criteria established by the 2001 supplement of the 2000 International Energy Conservation Code or the 2004 supplement of the 2003 IECC for the climate zone in which the product is installed.

Beginning June 1, however, qualifying products will need to have an SHGC of 0.30 or less, and a U-factor of 0.30 or less, regardless of which climate zone the product is installed in.

Part of the American Recovery and Reinvestment Act, the tax credit totals 30% — up to $1,500 – of the purchase price of qualifying products (labor costs are not eligible).

As noted in the May issue of Energy Design Update, the new criteria, collectively known as the 30-30 provision, have been criticized for being overly broad. The maximum U-factor is considerably lower than that required by Energy Star in southern states, and the SHGC maximum would limit potentially beneficial solar gain in the northern states.

What’s more, the Window and Door Manufacturers Association pointed out to the newsletter, the 30-30 provision will limit tax credits to the “best of the best.” As EDU explained, though, that may have been intentional on Congress’ part: The fact that 30-30 products are more costly may indeed limit their market, but that also would limit the government’s cost for that particular part of the stimulus package.