Tax Credit Legislation

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Window4U (IL)
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Tax Credit Legislation

#1 Post by Window4U (IL) »

I just received this email from the Window & Door Dealer Alliance as a call to action:

Greetings,

The compromise tax legislation that was released last week includes a reduced tax credit for windows, doors, and skylights, including a 10% tax credit of up to $200.00 for Energy Star windows and skylights and 10% credit up to $500.00 for Energy Star Exterior doors. This reduction is due to a reluctance to continue the 25C tax credits made in the 2009 American Recovery and Reinvestment Act.

The WDDA, along with other industry organizations, is continuing to support a continuation of the 25C tax credits. A continuation of these energy efficient home credits will encourage homeowners to reinvest in their homes and the economy. The 25C tax credits helped the window and door dealer industry survive the recent economic downturn and a reduction in these tax credits would be a serious blow.

Time is running out, but there is still time for you to contact your Congressional Representatives. The WDDA will continue to follow this issue. Please watch http://www.wddalliance.org and http://www.windowanddoor.com for news.

David Walker
dwalker@wddalliance.org

Skydawggy.
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Re: Tax Credit Legislation

#2 Post by Skydawggy. »

I really wish the govt. would spend money promoting the benefits of replacing windows and door rather than creating a welfare type of payment. The problem I see with govt. hand outs, and make no mistake about it, that's what it is plain and simple, is it introduces an un-natural blip in the marketplace which is inherently followed by a dip. Very similar to what a hailstorm does do the siding and roofing markets. I'd rather have a steady flow of business with consumers being educated to the benefits as opposed to being bribed.

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Windows on Washington
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Re: Tax Credit Legislation

#3 Post by Windows on Washington »

How about elimination of the 30% credit (with no upper limit) for PV and wind. :idea:

What a waste of money.

masterext
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Re: Tax Credit Legislation

#4 Post by masterext »

no way they have the money to even consider this. large infusions of cash,whether by keeping interest rates artificially low or spending ;inflation always follows.

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HomeSealed
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Re: Tax Credit Legislation

#5 Post by HomeSealed »

Done deal: $200 (10%) for windows, $500 for doors...

Congress Pares Back Tax Credits for 2011
December 17, 2010
Companies
Like the Senate on Wednesday, the U.S. House of Representatives passed legislation last night extending the Bush tax cuts for another two years. Expected to be signed by President Obama today, the final bill features a tax credit of up to $200 for Energy Star qualified windows and skylights and up to $500 for Energy Star qualified doors for 2011.

"WDMA members and staff worked with Hill allies to attempt to restore the full value of the 25c credit to the current level of 30 percent up to $1500, but unfortunately Congressional leadership did not allow for an open amendment process on the compromise tax measure which prevented our supporters from seeking an amendment restoring the current level," says Michael O'Brien, president, Window & Door Manufacturers Association. "While many members of Congress supported our efforts to preserve jobs and promote energy efficiency, they could not overcome the procedural roadblocks."

"Unfortunately, the credit was a victim of the relentless pursuit of budget savings," adds David Walker, VP, Window & Door Dealers Alliance.

There is little doubt, says Rich Walker, American Architectural Manufacturers Association president and CEO, that the action to severely reduce the 25(c) window tax credit from $1,500 to $200 for energy-efficient upgrades "will turn back the clock to 2008-09, unleashing the devastating domino effect during the height of the housing crisis."

The industry groups vowed to continue the fight for a return to $1,500 credits. "Homeowners who are currently caught in the crossfire of depreciated home values and a lagging economy will be unable to make these important energy-saving purchases without the assistance of any substantive incentive, and once again, as demand for fenestration products decline, manufacturers will be forced to slow production lines, shutter facilities, and implement substantial cuts to their workforce," says Rich Walker. "AAMA will continue to work with select Congressional members to promote legislation that contains a far more substantial, consumer incentive."

"WDDA has been one of the most active and vocal groups seeking the extension of this important tax credit. Many dealers contacted their members of Congress over the past week to voice your support for the larger tax credit," says Dave Walker. "It may be taken up again in the future, and you can be sure the WDDA will continue to take a leadership role in securing its eventual passage. This credit is too important to our industry, our employees, our economy and our environment for us to give up."

Skydawggy.
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Re: Tax Credit Legislation

#6 Post by Skydawggy. »

I think even $200 is too much. Do they really think that's going to motivate a consumer to suddenly leap out of their chair and decide to replace the windows? I mean get real. Why not promote the incentive as I said above and promise to contribute $200 to paying off all this debt we have accumulated. I'd be more motivated by that than getting a measly $200 tax credit.

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Randy
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Re: Tax Credit Legislation

#7 Post by Randy »

EcoStar Windows wrote:I think even $200 is too much. Do they really think that's going to motivate a consumer to suddenly leap out of their chair and decide to replace the windows? I mean get real. Why not promote the incentive as I said above and promise to contribute $200 to paying off all this debt we have accumulated. I'd be more motivated by that than getting a measly $200 tax credit.
I agree 100%! Enough already.

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Windows on Washington
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Re: Tax Credit Legislation

#8 Post by Windows on Washington »

Randy wrote:
EcoStar Windows wrote:I think even $200 is too much. Do they really think that's going to motivate a consumer to suddenly leap out of their chair and decide to replace the windows? I mean get real. Why not promote the incentive as I said above and promise to contribute $200 to paying off all this debt we have accumulated. I'd be more motivated by that than getting a measly $200 tax credit.
I agree 100%! Enough already.
My only contention is that if they are going to not renew these credits, I would like to see them get rid of the unlimited 30% for Solar, Wind, and Geothermal.

The first two are a flipping joke.

SuperiorW&D
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Re: Tax Credit Legislation

#9 Post by SuperiorW&D »

We are having a technical conversation at our place regarding "doors".

We consider a vinyl sliding patio door to be a "window". To us a "door" has hinges.

Also, in our building code any door with more than 40% glass is a "window".

I would love to hear some thoughts on this.

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Re: Tax Credit Legislation

#10 Post by SuperiorW&D »

New light shown on these NEW tax credits:

Also of note, is a new lifetime limit of $500 in credits that a homeowner can claim from January 1, 2006 to December 31, 2011. WDMA's fact sheet notes that this $500 limit is not on top of the $1,500 limit in 2009-2010. If a homeowner has already reached or exceeded the $500 limit, they are no longer eligible to claim another credit in 2011. The $500 limit is also not just for windows, doors and skylights, but for any combination of all tax credit qualifying products, such as HVAC equipment, insulation or roofing.

So anyone that used at least $500 of the $1500 available over the past 2 years (for ANY energy improvement) is automatically disqualified from the 2011 tax credits.

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Windows on Washington
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Re: Tax Credit Legislation

#11 Post by Windows on Washington »

That is really stupid and we be the source of a ton of confusion.

Pass it or pull it off the books entirely. This is like extending unemployment without paying for it in my opinion.

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HomeSealed
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Re: Tax Credit Legislation

#12 Post by HomeSealed »

Windows on Washington wrote:That is really stupid and we be the source of a ton of confusion.

Pass it or pull it off the books entirely. This is like extending unemployment without paying for it in my opinion.
I completely agree.


... My question is, what is the rating that is eligible as it seems to contradict itself. It states that it is a continuation of last years credit (implying that 30/30 is still the standard), however, elsewhere it explicitly states that window must be energy star certified as the measure of eligible performance....

FenEx
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Re: Tax Credit Legislation

#13 Post by FenEx »

My reply is pretty simple.

We all have many reasons to look to government for things we cant provide for ourselves such as fire, police, roads, international policy and trade, and many, many more. Don't get me wrong, I HATE the ignorance in DC, but it is what it is for the time being.

The simple fact remains that homeowners still need quality, efficient windows in their homes and can enjoy the benefits in many ways from energy savings, to improved resale value and huge differences in comfort and aesthetics, low/no-maintainence, etc. For consumers to ignore this and simply do nothing when they know there is a problem and just because the government won't pay for part of it is like kicking their own dog to spite the Anti-Cruelty Society because they wouldn't pay for grooming of their pet.

There will always be a need, and there will always be opportunities to help homeowners improve their comfort and their home investments with quality windows. If they choose to sacrifice the benefits until the tax base will cover part of the cost for them, that is their option which has no benefit (unless you are a utility or a struggling Real Estate agent pushing price-drop properties).

I have trained hundreds of consultants and helped thousands of homeowners nationwide and my message has never changed with regards to Gov program perks. Choose wisely and provide your own solutions... anything else is just icing on the cake.

Fenex

SuperiorW&D
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Re: Tax Credit Legislation

#14 Post by SuperiorW&D »

HomeSealed wrote:
Windows on Washington wrote:That is really stupid and we be the source of a ton of confusion.

Pass it or pull it off the books entirely. This is like extending unemployment without paying for it in my opinion.
I completely agree.


... My question is, what is the rating that is eligible as it seems to contradict itself. It states that it is a continuation of last years credit (implying that 30/30 is still the standard), however, elsewhere it explicitly states that window must be energy star certified as the measure of eligible performance....
The "30/30" has been changed to "Energy Star requirements of your area".

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Windows on Washington
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Re: Tax Credit Legislation

#15 Post by Windows on Washington »

FenEx wrote:My reply is pretty simple.

We all have many reasons to look to government for things we cant provide for ourselves such as fire, police, roads, international policy and trade, and many, many more. Don't get me wrong, I HATE the ignorance in DC, but it is what it is for the time being.

The simple fact remains that homeowners still need quality, efficient windows in their homes and can enjoy the benefits in many ways from energy savings, to improved resale value and huge differences in comfort and aesthetics, low/no-maintainence, etc. For consumers to ignore this and simply do nothing when they know there is a problem and just because the government won't pay for part of it is like kicking their own dog to spite the Anti-Cruelty Society because they wouldn't pay for grooming of their pet.

There will always be a need, and there will always be opportunities to help homeowners improve their comfort and their home investments with quality windows. If they choose to sacrifice the benefits until the tax base will cover part of the cost for them, that is their option which has no benefit (unless you are a utility or a struggling Real Estate agent pushing price-drop properties).

I have trained hundreds of consultants and helped thousands of homeowners nationwide and my message has never changed with regards to Gov program perks. Choose wisely and provide your own solutions... anything else is just icing on the cake.

Fenex
+1

Agreed on all points.

I am categorically opposed to the Federal Government propping up any institutions. They are usually the last good source of information on the subject matter and often times create what are otherwise negative economic trends.

I am glad that HomeStar fell on its sword. The amount of "Weatherization" sharks that were circling the USS Uncle Sam as he was getting ready to chum the waters was frightening. They were getting ready to serious corrupt and industry that was more Utopian in its factual basis.

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