NorthEast Windows USA, Inc.

1 Kees Place * PO Box 159 * Merrick, NY 11566

516-378-6577 * Fax 516-868-3577 * 718-895-3955

The Economic Stimulus Plan of 2009 enables homeowners to qualify for a federal income tax credit of up to $1,500 in 2009 and 2010 for purchases of high energy efficient windows.

Highlights:

• The qualifying federal income tax credit is equal to 30% of the cost of the windows or doors, up to a maximum credit of $1,500.

• The windows or doors must be "placed in service" (meaning ready and available for use) between January 1st, 2009 and December 31st, 2010 in the principal residence of the taxpayers.

• The qualifying windows and doors must have a U-Factor (which measures heat loss) of .30 or lower, and a Solar Heat Gain Coefficient (SHGC, which measures heat gain) of .30 or lower.

• The tax credit is for the cost of the product only, and does not include installation costs.

• These tax credits do not apply to new home construction.

• Unlike a tax deduction, which only reduces a percentage of the amount of tax owed, a tax credit directly reduces the tax itself, dollar for dollar.

The maximum amount of federal income tax credits for the purchase of all energy home improvements combined (including windows, doors, skylights, roofs, insulation, HVAC, non-solar water heaters and biomass stoves) is $1,500 during the two-year period, 2009 and 2010, of the tax credit.

Documentation:

• To claim the tax credit, the homeowner should:

  1. Fill out IRS Form 5695 "Residential Energy Efficient Property Credit", and file it with the 2009 or 2010 Federal Tax Return (Form 1040).

  2. Save, but do not include when filing the tax return, the following:

     1. Sales receipts for the merchandise.

     2. All NFRC performance labels for the windows or exterior doors.  In lieu of these labels, obtain the Manufacturer's Certification Statement, which certifies that the product is eligible for the tax credit.

• Further information regarding the tax credit is available at www.energystar.gov.

The above information is provided by NorthEast as a guideline only.  Consult your tax advisor or the IRS for information regarding how the tax credits may apply to your specific situation.