If you have decided to buy energy efficient windows, then you may qualify for an energy star window tax credit for 2009 and 2010 for up to as much as $200. A tax credit is different from a tax deduction since a tax deduction only reduces the amount of the income subjected to tax.
Tax credit on the other hand is the reduction on the tax itself and may possibly increase the amount of the federal refund. That is why if you have plans of purchasing windows, you’d better purchase windows with the energy star seal to take advantage of the energy star window tax credit. (more…)