WDMA Tells Congress the Importance of Window Tax Credits

September 23rd, 2011 by DWM Magazine

The Window and Door Manufacturers Association (WDMA) told Congress that “a properly focused residential tax credit, at a more robust level than the 2011 credit, can efficiently and effectively spur significant private investment in energy saving measures.”

The (WDMA) submitted a statement to the House Ways and Means Committee for its hearing entitled “Energy Tax Policy and Tax Reform” which discussed the importance of energy efficient tax incentives, in particular the energy-efficient tax credit for windows, doors and skylights scheduled to expire at the end of this year.

Enacted as part of the Energy Policy Act of 2005, the original purpose of the Residential Energy Efficient Tax Credit (IRC 25c) was to save energy. In its statement, however, WDMA points out that in recent years, the 25c incentives have achieved two national goals:

• Saving energy by making energy efficient home improvements more affordable for a wide spectrum of the American public; and

• Saving thousands of U.S. manufacturing and construction jobs.

By all accounts, the tax credits have been hugely popular with the American homeowner, particularly the middle class, in 2009 and 2010, says the WDMA. Internal Revenue Service (IRS) preliminary data for 2009 shows that taxpayers making under $100,000 a year claimed two-thirds of the credits.

“The bottom line is that the tax credit has been hugely popular with the American public because it works,” says WDMA president Michael O’Brien. “We are continuing to educate members of Congress about restoring the credit to a more robust level to improve energy efficiency and preserve jobs.”

In response to committee concerns about inadequate measures in place at the IRS to verify homeowner eligibility for the tax credit, WDMA has recommended consumer-friendly verification techniques to the IRS. The goal is improving the system to assure that the tax credits claimed on returns are actually for qualifying energy-efficient doors, windows and skylights. Currently, no documentation is provided on tax returns about the qualifying product, says the association.

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