All American Garage Door Co.

Earn a up to $1500 in Garage Door Tax Credits

The U.S. government is offering financial incentives to homeowners to buy qualifying insulated garage doors. Under stimulus legislation signed by President Obama, tax credits for energy-efficient home improvements have been extended and increased significantly. Adding a new garage door in 2009 or 2010 can save you money with lower home energy consumption and costs. With the tax credit inentive,  it will help pay for itself this year.

Tax Credit Specifics

  • Tax credits are available for qualifying garage door purchases that are placed in service from Jan. 1, 2009 – Dec. 31, 2010.
  • The maximum tax credit for all qualifying improvements combined is 30% of the cost of each product and $1500 over the lifetime of the tax credit between 2009 - 2010.
  • Homeowners now have another great reason to buy qualifying insulated residential garage doors - tax credit!
  • A tax credit is more vluable than a tax deduction because it reduces your tax “above the line” or “dollar-for-dollar,” while a deduction only decreases the amount of income that is taxed.

Tax Credit Eligability

The purchased garage door must meet the following criteria in order to be eligible for the tax credit:

  • The door must be installed on an insulated garage.
  • The door must be an insulated residential garage door.
  • The door must have a U-factor equal to or less than 0.30, even if the door contains glazing.
  • The door perimeter must have a means to control air infiltration.
  • If the door contains windows (glazing), it must offer a Solar Heat Gain Co-efficient (SHGC) equal to or less than 0.30.
  • The door must remain in service for at least five years.
  • The garage must be part of the taxpayer’s principal residence.
  • Dealers should provide homeowners with a Manufacturer’s Certification Statement along with a breakdown of the material and labor costs.

The tax credit is based on the total material cost of the purchase (the cost of installation does not qualify). The tax credit is equal to the sum of 30% of all qualified energy-saving improvements installed in an existing home in the calendar years of 2009 and 2010. The maximum tax credit is $1500.

For more information on garage door tax credit, please visit Energy Star. For products placed in service in 2009, you will need to file the 2009 IRS Form 5695 and submit it with your 2009 taxes (by April 15, 2010).  On the 2009 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52.