If you had window film installed in your home in 2014, here’s another savings benefit: a federal tax credit of up to $500.
Congress recently voted to extend a tax incentive program that can cover up to 10 percent of the cost of window films, according to the International Window Film Association (IWFA). The one-year retroactive tax credit may allow taxpayers to claim the incentives on their 2014 returns filed in 2015.
The IRS allows homeowners a direct dollar for dollar credit for the cost of solar control window film installed in their primary residence, with a lifetime maximum credit of $500 per taxpayer. Only the cost of the film itself qualifies, not the installation. Ask your tax professional for specific details and exceptions before filing.
Window Film Qualifies for Energy Efficiency Tax Credit
Window film qualifies as part of a building’s “insulation envelope” in the legislation, originally passed as the American Taxpayer Relief Act of 2012.
“We are delighted that Congress recently passed HR 5771 that includes tax incentives for energy efficient home improvements, such as installing window film,” said Darrell Smith, executive director of the IWFA.
Window films have been shown to reduce cooling costs by as much as 30%, and deliver 7 times (7X) the benefits per dollar spent, compared to installing replacement windows.
How Do I Know Which Window Film Qualifies?
Check with your professional window film installer or the manufacturer to determine if the film you had installed qualifies for the tax incentive program. Qualifying products vary by geographical climate zones and glass types.
How Do I Receive the Tax Credit?
You must submit IRS Form 5695 with your 2014 Income Tax Return. It’s also a good idea to keep your original window film invoice showing the cost of the window film and a copy of the manufacturer’s product certification for your records.