The real question is do you need replacement windows. Most people buy new replacement windows for one of three reasons: a) their current windows don't look good; b) their current windows don't work right; or c) their current windows aren't very energy-efficient. If the reason for replacing your windows is either a or b, then you can afford to wait given the economy. If your reason for getting new replacement windows is c, then the reality is it might just be the best time ever to buy.

The government's stimulus tax credit is coming to an end December 31, 2010. This allows the consumer a tax credit against taxes owed or paid based on the purchase of many energy-efficient products including replacement windows. When it comes to replacement windows, the credit is based on the purchase of highly energy-efficient products; not just a window that meets the Energy Star rating, but products that achieve even higher energy-efficient ratings. The credit is 30% of the cost of the windows, up to a $1500 cap. The customer needs to make sure they have four things: 1) A copy of the bill of sale (provided by the window replacement company); 2) A copy of the Manufacturers Certification Statement (this is a guarantee from the window manufacturer that the window you are getting qualifies for the tax credit and should also be provided by the company that installs your replacement windows); 3) Copies of the NFRC stickers attached to the windows at the time they are delivered to your home. These serve as proof that the windows meet the .30/.30 or better qualification required to qualify for the tax credit. (Your window replacement company representative can explain these qualifications in detail); and 4) IRS Form #5695 (available at irs.gov) for filing purposes. (Please be advised: This is not an attempt to give tax advice. Discuss your personal tax situation, and how this could apply to you, with a tax professional). Also, if you intend to take advantage of this credit, do so sooner rather than later. We heard a lot of anecdotal evidence that many consumers who wanted to take advantage of the credit for the tax year 2009, missed the opportunity because of manufacturers being inundated with orders from June of 2009 on. With the credit actually coming to an end in 2010, the demand could be even greater. Additional governmental programs, such as Cash for Caulkers, and other green initiatives, are working their way through Congress. Regardless of your political leanings, there can be no doubt that energy efficient products are going to be championed going forward.

Another strictly economical reason for moving forward might be the cost of replacement windows. Because of the collapse of the new construction industry, window manufacturers have been scared to increase prices to their dealers, for fear of losing those dealers in an already contracting market. The whispers in the industry are that with the increase in demand, may come price increases in product as well.