Caledonia Windows: "Replacement Windows Installation Service" Boston

What is a tax credit? You don't receive an income tax credit when you buy the product, like an instant rebate. You claim the credit on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount you have to pay.

Tax credits vs. tax deductions: In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions - such as those for home mortgages and charitable giving - lower your taxable income. If you are in the highest 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit

What do I need to do to get the tax credit? You will need to file IRS Form 5695 with your taxes. In addition, you will need to keep at least receipts proving that you purchased the improvements and a copy of the manufacturer's certification. Accountants and tax advisors should also be able to provide more guidance.

SUMMARY:

1. Keep receipts showing proof of purchase


2. Get a copy of the manufacture's certification


3. File IRS Form 5695 when filing your Federal Tax Return

Please note: We at Caledonia Windows are experts at installing and servicing energy efficiency windows, not taxes, and we do not provide tax advice; you may want to consult a tax professional.

Energy Efficient Homes Start With Windows

Caledonia Construction is the local leader in the supply and installation of energy
efficient replacement windows. "A goal for our company is to make energy efficiency
household words in our market place,"
David Allen, President, Caledonia Construction

For the next few decades, energy efficiency is one of the lowest cost options for
reducing US carbon emissions.
Many studies have concluded that energy efficiency can save both energy and money.
For example, a recent McKinsey report calculated the potential savings assuming a 7%
discount rate, no price on carbon and using only "net present value positive"
investments. It found the potential to reduce consumer demand by about 23% by 2020
and reduce GHG (Green House Gas) emissions by 1.1 gigatons each year - at a net
savings of US $680 billion.
Likewise, the National Academies found in 2009 that accelerated deployment of costeffective
technologies in buildings could reduce energy use by 25-30% in 2030. The
report stated: "Many building efficiency technologies represent attractive investment
opportunities with a payback period of two to three years."
Steven Chu, U.S., Secretary of Energy

Improving the efficiency of buildings, which account for 40 percent of national energy
use, is truly a priority for Caledonia Construction.
With the $1,500 dollar Federal Tax Credit ending on December 31 2010, now is the
time to replace your drafty windows.
Caledonia Construction Company, Inc
david@caledoniaconstruction.com
www.caledoniaconstruction.com
617-690-2122