TAX CREDIT, ENERGY, REMODELING, AND WINDOWS:

TAX CREDIT INFORMATION

VINYL IS GREEN

WINDOW BASICS

WHAT CUSTOMERS

SHOULD KNOW

WINDOWS: CONFIGURATIONS

ENERGY

TAX CREDIT QUESTIONS:What you need to know from energystar.gov

Q. How can I determine if I can collect the tax credit?

A. Whether or not you are getting a refund does not matter. What matters is your “tax liability” – which is the total amount of federal income tax you’re responsible for paying. These energy efficiency tax credits are technically “non-refundable” which means you can’t get more money back in tax credits than you pay in federal income taxes (your tax liability). Check your last year’s tax return (line 61 on the 1040 form) or speak with your tax professional to get a sense of your tax liability.

Example: Your Adjusted Gross Income (AGI) is $50,000. Your tax liability is $10,000 and you have had $12,000 withheld from your paychecks for taxes. If you are eligible for the entire $1,500 tax credit, your liability would be reduced by that amount ($10000-$1500=$8500).

TAX CREDIT QUESTIONS:

Q. What tax forms do I need?

A. First: Speak with your tax professional. The IRS Form 5695 will need to be filled out. This is then claimed on line 52 of your normal Form 1040. You will need 2 major items in order to calculate your refund:

YOU WILL NEED:

-Manufacturer’s Certification Statement

-Invoice from Contractor

TAX CREDIT QUESTIONS:

Q. Is the $1,500 tax credit for each product? Each year? Each person?

A. You can only get a maximum of $1,500 on the current 2 year period (2009 & 2010). Basically you can spend up to $5,000 during this 2 year period on a single or multiple products, for your principle residence that you own and live in. If you receive the entire $1,500 credit in 2009, you cannot get anything additional in 2010.

There are exceptions: please see www.energystar.gov for more information on geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators. There are no upper limits for these items.

TAX CREDIT QUESTIONS:

Tax Credit Recap Information:

• 30% of the total cost up to $1,500 with exceptions

• Must be an existing home & your principle residence.

• Labor and/or installation cannot be included in the total cost.

• Tax Liability is the deciding factor – not your refund amount:

Tax Liability - Credit=Total Liability ~ Total Withheld - Total Liability=Refund

There are exceptions: please see www.energystar.gov for more information on geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators. There are no upper limits for these items.

WHY IS VINYL A GREEN PRODUCT?www.vinylinfo.org & www.vinyldesign.com

• Vinyl windows & doors are energy efficient during both the manufacturing and use phases of their lifecycle.

• Vinyl products have low embodied energy – this means that the amount of energy required to convert raw material into a final product is lower than for many alternatives.

• A lifecycle study by Franklin Associates has shown that vinyl windows required 3 times less energy to manufacture than aluminum windows.

• The use of vinyl over alternatives in window frames save the US nearly 2 trillion BTU’s of energy per year – enough to meet the yearly electrical needs to 20,000 single-family homes.

WHY IS VINYL A GREEN PRODUCT?

• Today’s design of vinyl window frames further enhance their energy efficiency by creating chambers in the frame that provide additional resistance to heat transfer and insulating air pockets.

• Vinyl windows and glass doors perform extremely well in comparison to alternative framing materials. This means a lower heating & cooling for homeowners – as well as environmental benefits.

• Vinyl windows and doors continue to save energy throughout their useful lives. Lasting on average 20-30 years with little maintenance.

• In addition, the low maintenance requirements of vinyl windows & glass doors eliminates the need for paints, stains, strippers, and thinners which can negatively impact indoor air quality.

WHY IS VINYL A GREEN PRODUCT?

• Vinyl is a thermoplastic, meaning, it can be reprocessed for recycling using heat with minimal loss of properties.

• With all these improvements having been made over the last few decades to the manufacturing process of vinyl windows, maintenance is practically non-existent and non-essential.

• Vinyl windows and doors are impervious to rot, rust, corrosion, blistering, flaking, and infestation by termites or other insects.

• Vinyl windows are manufactured with UV inhibitors for improved weathering and stabilizers to protect the frames from cracking, splitting, pitting, peeling, or chalking.

A HISTORY OF VINYL:• In the late 1800’s, European researchers used an earlier discovered gas called

vinyl chloride in a mixture, created what they considered to be a useless rigid material. Although this material was examined by other scientists, at this time, no one could come up with a commercial use for it.

• In the 1920’s, BF Goodrich scientists started experimenting and created what we all know PVC or vinyl. Throughout the late 1920s, the experiments continued while BF Goodrich struggled to market the material.

• In the 1930’s, vinyl usage was starting to become commercial. Shock absorbing seals were the initial eye opener to reducing our country’s dependence on rubber and oil. Vinyl was used to develop the first American synthetic tires.

• In the 1940’s, Vinyl was used as a nonflammable electrical wire coating and took the place of rubber during World War II.

A HISTORY OF VINYL:• In the 1950’s, Vinyl continued to diversify. The most important innovation

came when irrigation pipe made from rigid vinyl was introduced and PVC pipe was born.

• Vinyl sales grew in the mid 1990’s for both new construction and remodeling by 125%!

• Today and Tomorrow: Since the accidental discovery more than seven decades ago, vinyl’s use has grown and expanded in virtually every industry. Most notable, however, in the construction industry. Of the more than 30 Billion pounds of vinyl produced worldwide today, about 60 percent is used in the construction industry. Industry projections indicate that this growth will continue well into the future, especially to meet the infrastructure needs of a growing global population.

VINYL RECAP:

• Vinyl is energy efficient during both the manufacturing and use phases, is recyclable, and requires little to no maintenance saving on air quality and also landfill space. If vinyl does end up being put in thrown away, it will remain safely inert.

• The use of vinyl window frames save the US nearly 2 trillion BTU’s of energy per year; enough for 20,000 single family homes.

• The energy efficiency of vinyl windows and glass doors mean less electricity being used by producers and by users, with reduced greenhouse gas emissions from those producers and also, from our homes.

ENERGY IN OUR HOMES:

How Does the Air Escape

Heating & Cooling accounts for the biggest part of a typical utility bill.

How We Use Energy in Our Homes

Air infiltrates through every crack and crevasse. As you can see over 20% is lost

through your windows & doors.

U.S. Department of Energy Energy Savers Booklet October 2008

ENERGY IN OUR HOMES:Q. What does energy efficiency provide?

A. Greater Comfort:-No drafts or hot spots-More evenly distributed temperature

Improved Indoor Air Quality:-Source Control-Filtration & Ventilation

Enhanced Durability:-Reduced maintenance and repair-Extended value of home

Higher Resale Value:-Added value of energy efficiency

Environmental Benefits:-CO2 Reduction-Housing represents more than 20% of all US CO2 emissions.

Lower Utility Costs:-For the life of the product

ENERGY IN OUR HOMES:Q. What do R Factor, U Value, VLT, & Solar Heat Gain Co-Efficient really mean?

A. R Factor: a measure of conductivity.-An R-Value measures resistance to heat flow; sometimes described as thermal resistance.-A high R value or factor is good. For windows: At least a R-4, however an R-10 package is available and is the most energy efficient.

U Value: Assessment of the energy efficiency in terms of thermal transmission.-A U value is the proper way to rate heat loss through windows.-The lower the better with U values. For windows: Anything .30 and under is considered energy efficient – we offer a .25 and a .10.

These 2 terms are used quite often. The new Energy Tax Credit requires that windows must have a U Value of .30 or less. This new rule (changed from 2007) has disqualified many windows and doors.

ENERGY IN OUR HOMES:Q. What do R Factor, U Value, VLT, SHG really mean (continued…)

A. VLT: Visible light transmittance measures the amount of visible light transmitted.-The higher the VLT, the more daylight will enter a room.-Anything from .30 to .80 is standard in windows.

SHG: Solar Heat Gain Coefficient or Light-to-Solar Gain is a combined measurement to see how much sun enters through glass.-This is usually measured 2 ways: center of glass and total window.-The lower the number, the less solar heat the window transmits. For Windows: a .30 is a standard rating, but again, the lower the better.

ENERGY RECAP:

• Heating and cooling are the largest part of a typical utility bill.

• Every day, the average American household has lost 20% of it’s heat through their windows & doors.

• Energy Efficiency Provides: Greater comfort, improved indoor air quality, enhanced durability, higher resale value, environmental benefits, and lower utility costs.

• R Factor – higher is better – R-4 or R-10

• U Value – lower is better - .30 or lower is required to meet the Energy Tax Credit

WHAT CUSTOMERS SHOULD KNOW:

In this portion, we will look at:

• What you should know before selecting your home improvement company and what the requirements are in Wisconsin.

• What I would like you to know as my customer.

• Insider tips on when and how to purchase your windows, doors, and siding.

WHAT CUSTOMERS SHOULD KNOW:CHOOSING THE RIGHT REMODELER – WHAT TO ASK FOR:

• There are 2 main items every company should bring to a consultation:

• Insurance Certificate: If a company does not have insurance DO NOT USE THEM! All liability will fall upon you and your home owners policy. You should see the following on an insurance certificate: General Liability, Auto liability, excess/umbrella liability, and workers compensation & employers liability.

• Wisconsin Contractor Number’s AND Modifier: Contractor license numbers have been issued for quite some time, however, the modifiers are newly required. Modifiers were specifically designed to allow reputable contractors to pull permits. If you are asked to pull a permit, think twice. All permits in small remodeling should be pulled by the contractor.

WHAT CUSTOMERS SHOULD KNOW:CHOOSING THE RIGHT REMODELER – WHAT TO ASK:

• Experience and Age of Business: The older the business, the better; or the more experience, the better. A good example is Valley Construction. We have been in our current location since 1991. Our owner, in the business since the 70’s. My head installer, in the business since 1960’s! Me, in this specific business since 2005, however, my background has always been in or around construction.

• Response Time: Call or email your selected remodeler. How attentive are they? Did they respond quickly and was the response courteous, professional, and helpful? Could they answer basic questions? Do they have standard appointment times? Ask yourself these questions when speaking with your remodeler. The answers you receive will let you know the right choice.

WHAT CUSTOMERS SHOULD KNOW:CHOOSING THE RIGHT REMODELER – MANUFACTURERS:

• Factory Relations with Remodelers:

• Ask who their suppliers are:

• Do they have an exclusive relationship with established, name brand manufacturers?

• Cut-rate window dealers may save money in the short run, but will end up costing more if the product is faulty or the installation creates problems.

• Make sure your windows come with a Manufacturer’s Warranty that contains Your Order Number Specific to Your Name.

WHAT CUSTOMERS SHOULD KNOW:CHOOSING THE RIGHT REMODELER – REFERRALS:

• Customer Referrals in your area:

• Before going on a consultation, we will know your address. We will also know of people in our around your specific neighborhood you can call on. We try to match project to project (door to a door, window to a window) so that you can see more of the exact final product.

• We also believe in customer referrals! It is what keeps us busy! As a thank you, after a referred job is completed, we send a nice Thank You note with a check for $100!

• Also, check out websites. Are there a lot of customer testimonials? Pictures? There should be, if not there is a reason. If they do not have them online, do they carry pictures and letters in their pitch books?

WHAT CUSTOMERS SHOULD KNOW:TIPS FOR PURCHASING THIS YEAR:

THE TAX CREDIT IS ONLY ON PRODUCTS INSTALLED BEFORE 12-31-10

• If you do not purchase prior to June of this year, I cannot promise your product will be in before the end of December. No remodeling professional cannot predict the future. Sometimes delays are inevitable: weather, rot, additional work requested by the customer. These all add days onto an already tight schedule.

• Our busiest months are May and October – if you wait to purchase until October, I can almost definitely guarantee you that your windows will be placed into service after December.

WHAT CUSTOMERS SHOULD KNOW:TIPS FOR PURCHASING THIS YEAR:

TAKE YOUR CONSULTATION SERIOUSLY

• Have all decision makers present for your appointment. We have a rule in our company, if everyone isn’t there, we do not run the appointment.

• Be on time for your appointment.

• Turn off your TV and other distractions.

• Listen and ask questions. If you’d like, please write down any questions or concerns, we love this and will gladly answer all of them.

WHAT CUSTOMERS SHOULD KNOW:INSIDER TIPS:

WHAT MY BOSS DOESN’T WANT YOU TO KNOW

• Purchase as many windows as possible at the same time. Group rates are always better and most of the time, we have a buy 5 get 1 free sale. Overall, purchasing windows, siding, and doors all at the same time will absolutely give you the most product for your money.

• He is a sucker for pets, kids, and friends or relatives of our friends.

• Stop into our showroom! You can actually see and touch the windows & doors we would be installing. Also, I have many examples with all types of accessories – great for new ideas!

WHAT CUSTOMERS SHOULD KNOW:FINAL TIP:

• If you purchase your windows from a large store, do not expect any of the benefits of purchasing from a remodeling firm. When you purchase by yourself, you are buying a t-shirt: a mass produced, non-customized, one-size-fits-all product.

• Many times, these windows are made with lower grade material, purchased in bulk, and quickly manufactured.

• Purchasing from a home remodeler you will only have to make 1 phone call to get a replacement part. Example: customer A called to report a light fog in an area on their window. Instead of questioning my customer, I will order a warranted part specifically designed from their original window off of their original order.

REMODELERS FINAL ADVICE:

Keep in mind, we cannot quote you a price over the phone or in the showroom.

No, we cannot guess either.

No, we really can’t give you a ballpark price.

No, I can’t tell you what a 45 ¼ x 45 ¾ white window will cost.

No, I am not trying to be difficult.

Unless we see the situation we are going into we cannot scope the job.

Seriously, we are not trying to be difficult. If I cannot actually see your project, I cannot give you the absolute best advice for you and your family.

WINDOW BASICS:

Features and Accessories – The Breakdown:

• Glass Packages: Typically, the standard window has 2 panes of glass with Low E glass coating and an Argon gas fill. Some people carry a triple pane option: 3 panes of glass with Low E coatings and filled with Krypton.

• Colors: There are more options than ever! However, there are only 2 colors that are extruded. Extruded means that the color is actually in the vinyl, not painted on. With our company, Vista, we can custom color to match Sherwin Williams color and also offer more standard painted colors.

• Art Glass & Grids: Art glass is anything with an etching or colored glass elements. Grids can be etched, beveled solid, solid straight, or slim-line brass.

WINDOW BASICS:

Features and Accessories – The Breakdown:

• Easy Cleaning Latches: This is becoming more of a standard item on all windows. The difference is where the hinges are placed.

• Limit Latches: These nifty little gadgets are placed about 2 inched above a double hung sash or 3 inches to the side of a sliding window. They are an extra safety feature so that you can keep your window open without the possibility of them being opened to their fullest extend.

• Weep Holes and Weep Hole Covers: Newer windows have a slanted sill so that everything drains away from the inside. The weep holes are located at the very bottom of the windows for drainage.

WINDOW BASICS RECAP:

• Glass Packages: There are a lot! Keep in mind you at least need a dual (2)

paned, Low E coated, argon gas filled window to qualify for the Tax Credit with a U factor of .30 or lower.

• Basic Extras: Pivoting sashes for easier cleaning. Limit latches for added security. Weep holes with covers for drainage.

• Colors and Grids: 2 colors, white and tan, are the product, no paint. Any other color can be made. Grids can be as different as you are. Art glass comes in so many varieties we cannot cover them all!

WINDOW TYPES:

Basic Window Configurations:

Double hung – up and down moving sashes2-Lite Slider – side to side sliding sashes

Casement – a crank-out type window with the screen on the inside.3-Lite Slider – usually slider (1/4), stationary picture window (1/2), slider (1/4)

Picture – stationary window with no opening capabilityBay window – Usually double hung side windows and a picture window in the

center – protrudes from the home.Bow window – can be multiple lite’s, 3, 4, 5, and even 6. Normally configured with

casement sides and picture windows in the center.Other types: garden box windows & transoms (circle and right angled).

WINDOWS MAINTENANCE:LOW MAINTENANCE DOES NOT MEAN NO MAINTENANCE:

• Clean Surfaces: Brush dirt from window tracks and sills at least once a year. Keep your track free of dead bugs, cobwebs, grime, and other debris so that the window can continue to close and open easily and form a tight seal when closed.

• Keep the Drainage Functioning: Windows typically use a “weep” system. Tiny weep-holes in the frame help to keep water from collecting in the tracks. Be sure the weep-holes are not obstructed. If you damage your weep-hole when cleaning, we keep them and other small items in stock

• Weather Stripping: Weather stripping is integral to their performance. Inspect and clean regularly. Our weather stripping is unique to our windows. Also, we keep this in stock.

• Hardware & Accessories: Sash locks, operators, and patio door rollers also need to be inspected regularly and replaced when not working properly. Again, this is a small part and is kept in stock.