January 07, 2016

25C Could Spark Renewed Interest in ENERGY STAR® Products

by Ric Jackson

In case you missed it over the holiday break, Congress made a surprising announcement that it enacted the PATH Act (H.R. 2029) into law. Since the 25C tax credit and other energy-saving incentives were not part of previous versions of the bill, it caught me – and I’m sure many others –by surprise that the federal tax credits were reinstated for 2015 and 2016.
While I’ve always been a supporter of federal tax credits for energy-efficient upgrades, my feelings are lukewarm that 25C will have any significant impact on window and door sales at the current levels (10% of the cost of retrofit windows and doors up to $200 for windows and $500 for doors, not including installation costs).
While the tax credits alone may not be enough to influence buying decisions, I do feel strongly that it very well could spark renewed interested in ENERGY STAR®- rated products. According to the full text of the PATH Act, to qualify for 25C tax credits for windows, doors and skylights they must meet ENERGY STAR Version 6.0 requirements.
If nothing else, window manufacturers and dealers with qualifying products should see this as a marketing opportunity. ENERGY STAR remains the most recognizable symbol of energy efficiency among consumers and 25C means we have a reason to bring the label to the forefront of our discussions with potential customers. It could be just the thing to take the leap from consideration to sale.
In light of the new tax credits, do you plan to more aggressively market your ENERGY STAR-rated products? I’d love to hear your take. Email me directly at eric.jackson@quanex.com.

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Posted: January 07, 2016 by Ric Jackson Filed under: