WINDOWREPAIR .COM, INC.
Energy-Saving Tax Credits   

To see if you can get a tax credit for making your windows more energy efficient, review the sample Form 5695 shown below. For more information or to calculate actual savings, contact your tax preparer, call the IRS at 800-829-3676 or view the form and instructions online at the IRS website.

The sample Form 5695 Part I below is filled out for an installation of 25 storm windows costing 25 x $200 = $5000 (line 2d), and weatherstripping costing 25 x $110 = $2750 (line 2a), to an existing home. Some items are intentionally left blank or shown as "0" due to individual taxpayer differences, and so your results may vary.

Part II, the Residential Energy Efficient Property Credit, lines 16 through 34, is not shown because it lists solar electric property costs, solar water heating property costs, fuel cell property costs, 2006 Credit carryforwards, and has nothing to do with windows.

Part III, Current Year Residential Energy Credits, is not shown because it simply totals Part I Credits and Part  II Credits on line 35, Current Year Residential Energy Credits, and instructs the tax preparer to enter this figure on Form 1040, line 50.

Form    5695 Department of the Treasury
Internal Revenue Service
Residential Energy Cedits
General Instructions, Page 3
Purpose of Form
Use Form 5695 to figure your residential energy credits. The residential energy credits are:
●  The nonbusiness energy property credit, and
●  The residential energy efficient property credit.
4See Instructions
4Attach to Form 1040 or Form 1040NR.

OMB No. 1545-0074
2007
Attachment
Sequence No. 158
 Name(s) shown on return
General Instructions, Page 3
Who Can Take the Credits
You may be able to take these credits if you made energy saving improvements to your home located in the United States in 2007. For credit purposes, costs are treated as being paid when the original installation of the item is completed, or in the case of costs connected with the construction or reconstruction of your home, when your original use of the constructed or reconstructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that are allocable to the nonbusiness use can be used to determine the credit.

Subsidized energy financing. Any amounts provided for by subsidized energy financing cannot be used to figure the credits. This is financing provided under a federal, state, or local program, the principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy.
 Your social security number
                  |             |       
Before you begin Part I:

 Figure the amount of any foreign tax credit or retirement savings contributions credit you
are claiming.
 Part I   Nonbusiness Energy Property Credit (See instructions before completing this part.) General Instructions, Page 3
Nonbusiness Energy Property Credit
You may be able to take a credit equal to the sum of:
  1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2007,
    2. and
  2. Any residential energy property costs paid or incurred in 2007.
  However, this credit is limited as follows.
  • A total combined credit limit of $500 for all tax years after 2005
  • A combined credit limit of $200 for windows for all tax years after 2005
  • A credit limit for residential energy property costs for all tax years after 2005 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.
If you took the nonbusiness energy property credit in 2006 and the amount on your 2006 Form 5695, line 8, is $500, you cannot take the credit in 2007.
  1   Were the qualified energy efficiency improvements or residential energy property costs for your
main home located in the United States? (see instructions)     .     .     .     .     .     .     .     .     .     .   4   Specific Instructions, Line 1

To qualify for the credit, any qualified energy efficiency improvements or residential energy property costs must have been for your main home located in the United States. See Main Home on page 3. If you check the "No" box, you cannot take the nonbusiness energy property credit.

General Instructions Page 3...
Home. A home is where you lived in 2007 and may include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.

  You must reduce the basis of your home by the amount of any credits allowed.

Main home. Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, will not change your main home.

Special rules. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation. 		 1     Yes   Noa
  Caution: If you checked the "No" box, you cannot claim the nonbusiness energy property credit.
Do not complete Part 1. 		     
  2   Qualified energy efficiency improvements (see instructions). General Instructions, Page 3...
Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2007 located in the United States if these components are new and can be expected to remain in use for at least 5 years.
  • Any insulation material or system that is specifically and primarily designed to reduce the heat loss or gain of a home when installed in or on such home.
  • Exterior windows (including certain storm windows and skylights).
  • Exterior doors (including certain storm doors).
  • Any metal roof installed on a home, but only if this roof has appropriate pigmented coatings that are specifically and primarily designed to reduce the heat gain of the home.
For purposes of figuring the credit, do not include amounts paid for the onsite preparation, assembly, or original installation of the property.

Specific Instructions, Lines 2a through 2h
Note. Any references to the International Energy Conservation Code (IECC) are treated as references to either the 2001 Supplement of the 2000 International Energy Code or the 2004 Supplement of the 2003 International Energy Conservation Code.


Do not include on lines 2a through 2d any amounts paid for the onsite preparation, assembly, or original installation of the components.


Manufacturer’s certification. For purposes of taking the credit, you may rely upon a manufacturer’s certification in writing that a building envelope component is an eligible building envelope component. Do not attach the certification to your return. Keep it for your records.

  Special rule for Energy Star windows and skylights. You may rely upon the Energy Star label that identifies any window or skylight as an eligible building envelope component rather than the manufacturer’s certification.
    a Insulation material or system specifically and primarily designed to reduce heat loss or gain in
your home     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     . Specific Instructions, Line 2a.
Enter the amounts you paid for any insulation material or system (including any vapor retarder or seal to limit infiltration) that is specifically and primarily designed to reduce the heat loss or gain of a home when installed in or on such home and may be taken into account in determining whether the building thermal envelope requirements established by the IECC are satisfied.

A component is not specifically and primarily designed to reduce heat loss or gain of a home if it provides structural support or a finished surface (such as drywall or siding) or its principal purpose is to serve any function unrelated to the reduction of heat loss or heat gain. 		2a 2750 00
    b Exterior doors     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     .     . Specific Instructions, Line 2b.
Enter the amounts you paid for exterior doors that meet or exceed the criteria established by the IECC for the climate zone in which such doors were installed. Also, enter the amounts you paid for any storm door that, in combination with a wood door assigned a default U-factor by the IECC, does not exceed the default U-factor requirement assigned to such combination by the IECC. 		2b         0 00
    c Metal roof with appropriate pigmented coatings that meet the Energy Star program requirements
and is specifically and primarily designed to reduce heat gain in your home     .     .     .     .     .     . Specific Instructions, Line 2c.
Enter the amounts you paid for a metal roof, but only if this roof has appropriate pigmented coatings, which are specifically and primarily designed to reduce the heat gain of the home, and such roof meets or exceeds the Energy Star program requirements (in effect at the time of installation). 		2c         0 00
    d
 Exterior windows (including skylights)     .     .     .     .     .     .     .     .     .     .     . Specific Instructions, Line 2d.
Enter the amounts you paid for exterior windows (including any storm windows installed with such exterior windows) and skylights that meet or exceed the criteria established by the IECC for the climate zone in which these components were installed.

If you took the credit for windows in 2006 and the amount on your 2006 Form 5695, line 2b, is $2,000, you cannot take the credit for windows in 2007.
2d
   5000 00
2e
 $2000  
2f
         0 00
2g
   2000 00
     
    e
 Maximum amount of cost on which the credit can be figured     .     .     .
    f
 Enter the amount, if any, from your 2006 Form 5695, line 2b. Otherwise,
enter -0-     .     .     .
    g
 Subtract line 2f from line 2e     .     .     .
    h
 Enter the smaller of line 2d or 2g     .     .     .     .     .     .     .     .     .     .     .     .     .     .     . 2h 2000 00
  3  
 Add lines 2a, 2b, 2c, and 2h     .     .     . 3 4750 00
  4  
 Multiply line 3 by 10% (.10)     .     .     . 4   475 00
  5  
 Residential energy property costs (see instructions). Specific Instructions, Lines 5a Through 5c
Also include on lines 5a through 5c any labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.

 		     
    a
 Energy-efficient building property. Do not enter more than $300     .     . Specific Instructions, Line 5a.
Enter the amounts you paid for energy-efficient building property. Energy-efficient building property is any of the following.
  • An electric heat pump water heater that yields anenergy factor of at least 2.0 in the standard Department of Energy test procedure.
  • An electric heat pump that has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at least 15, and an energy efficiency rating (EER) of at least 13.
  • A closed loop geothermal heat pump that has an EER of at least 14.1 and a heating coefficient of performance (COP) of at least 3.3.
  • An open loop geothermal heat pump that has an EER of at least 16.2 and a heating COP of at least 3.6.
  • A direct expansion geothermal heat pump that has an EER of at least 15 and a heating COP of at least 3.5.
  • A central air conditioner that achieves the highest efficiency tier that has been established by the Consortium of Energy Efficiency and is in effect on January 1, 2006.
  • A natural gas, propane, or oil water heater that has an energy factor of at least 0.80.
Do not enter more than $300 on line 5a.
5a
         0 00
5b
         0 00
5c
         0 00
    b
 Qualified natural gas, propane, or oil furnace or hot water boiler
Do not enter more than $150     .     .     .     .     .     . Specific Instructions, Line 5b.
Enter the amounts you paid for a natural gas, propane, or oil furnace or hot water boiler that achieves an annual fuel utilization efficiency rate of at least 95. Do not enter more than $150 on line 5b.
    c
 Advanced main air circulating fan used in a natural gas, propane, or
oil furnace. Do not enter more than $50     .     .     .     .     .     . Specific Instructions, Line 5c.
Enter the amounts you paid for an advanced main air circulating fan used in a natural gas, propane, or oil furnace that has an annual electricity use of no more than 2% of the total annual site energy use of the furnace (as determined in the standard Department of Energy test procedure). Do not enter more than $50on line 5c.
  6  
 Add lines 5a through 5c     .     .     . 6       0 00
  7  
 Add lines 4 and 6     .     .     . 7   475 00
  8  
 Maximum credit amount.     .     .     . Specific Instructions, Line 8.
If the rules on page 4 for joint occupancy apply, cross out the preprinted $500 on line 8 and enter on line 8 the smaller of:
  1. The amount on line 7, or
  2. $500 multiplied by a fraction. The numerator is the amount on line 7, and the denominator is the total amount from line 7, for all owners.
For more details, see Joint occupancy in the first column on page 4. 		8 $500  
  9  
 Enter the amount, if any, from your 2006 Form 5695 , line 8. Otherwise enter -0-     .     .     . 9       0 00
10  
 Subtract line 9 from line 8     .     .     . 10   500 00
11  
 Enter the smaller of line 7 or line 10     .     .     . 11   475 00
12  
 Enter the amount from Form 1040, line 46, or Form 1040NR, line 43     .     .     . Specific Instructions, Line 12.
Line 46 is the sum of Form 1040 lines 44 and 45.
Line 44 is the sum of all the following that apply;
  • the tax on your taxable income, from
    • Tax Table
    • Form 8615, Tax for Children Under Age 18 With Investment Income of More Than $1,700
    • Schedule D, Capital Gains and Losses
    • Schedule J, Income Averaging for Farmers and Fishermen
    • Form 2555, Foreign Earned Income
  • Form 8814, Parents' Election to Report Child's Interest and Dividends
  • Form 4792, Tax on Lump-Sum Distributions
  • Form 8889, Health Savings Accounts
plus line 45;
      ●  Form 6251, Alternative Minimum Tax for Individuals
12
    
13
    
     
13  
 Enter the total, if any, of your credits from Form 1040, lines 47 through
49, and lines 51 and 53, or Form 1040NR, lines 44, 46, and 48     .     . Specific Instructions, Line 13.
These Form 1040 credits include;
  • Line 47 Form 2441, Child and Dependent Care Expenses
  • Line 48 Schedule R, Credit for the Elderly or the Disabled
  • Line 49 Form 8863, Education Credits (Hope and Lifetime Learning Credits)
  • Line 51 Form 1116, Foreign Tax Credit
  • Line 53 Form 8880, Credit for Qualified Retirement Savings Contributions
 
14  
 Subtract line 13 from line 12. If zero or less, stop. You cannot take the nonbusiness energy
property credit     .     .     . Specific Instructions, Line 14.
If the credits totaled on line 13 are the same or a larger amount than the taxes totaled on line 12, we're sorry, you're not eligible for the Form 5695 Residential Energy Credit. 		14    
15  
 Nonbusiness energy property credit. Enter the smaller of line 11 or line 14     .     .     . 15   475 00

For Paperwork Reduction Act Notice, see instructions.                               Cat. No. 13540P
Form 5695 (2007)