IRS Says 30/30 Will Not Go into Effect Until June 1

On April 22, the Internal Revenue Service (IRS) issued a news release about the tax credit for energy efficiency home improvements (CLICK HERE for that announcement), stating that the previous tax credit for doors, windows and skylights will carry over until June 1, 2009. This is known as the "Safe Harbor" provision.

According to the IRS, under the old tax credit, doors, windows and skylights had to meet or exceed the prescriptive criteria established by the 2001 Supplement of the 2000 International Energy Conservation Code (IECC) or the 2004 Supplement of the 2003 IECC for the climate zone in which the product is installed. Either ENERGY STAR labels or manufacturer certification statements were required to document these requirements for windows and skylights; doors were required to have a manufacturer certification statement. These performance terms and certification requirements will continue until June 1, 2009. The monetary terms of the current tax credit still apply to all door, window and skylight purchases made in 2009 and 2010.

The IRS clarifies that this is not a change in the tax law: As of June 1, all products must meet the U-factor and solar heat gain coefficient (SHGC) maxima of 0.30. The agency also notes that this is not the revised guidance document, which constitutes the final word from the IRS on how the tax credit will be implemented. The IRS plans to issue the revised guidance document later this spring, according to the Department of Energy (DOE).

USGNN.com has been following this issue closely and was in attendance last week when members of the Northeast Window and Door Association met with Sen. Olympia Snowe's office regarding the 30/30 criteria. During that meeting, Patrick Woodcock, Snowe's legislative assistant, made no mention of this IRS statement, and told NWDA members that the 30/30 requirements were effective as soon as the stimulus act was signed into law. USGNN.com has contacted Woodcock for further information. Stay tuned to usgnn.com for further updates. (CLICK HERE for a full report of last week's meeting with Snowe's office.)

Richard Karney, DOE program manager, who was also in attendance at the April 23 NWDA meeting (he participated in an educational session that morning. CLICK HERE for that story.) had no knowledge at the time of the April 22 IRS statement. The DOE, however, did issue an alert to ENERGY STAR stakeholders today regarding this change.