2009 Tax Credit for Window Film
Rising heating and cooling costs are driving consumer demands for affordable energy-saving home improvement solutions. To encourage these improvements, an Energy Tax Credit is being extended to consumers who make these improvements during the 2009 calendar year.
Under section 25C of the Internal Revenue Code (I.R.C.), homeowners can receive a 10 percent credit on the costs of "qualified energy efficiency improvements," including 3M solar control window film on windows, doors, and skylights. This tax credit applies to improvements made to a primary residence from Jan. 1, 2009 through Dec. 31, 2009. Tax credits are available for many types of home improvements, and are listed on www.energystar.gov.
Money in Your Pocket
A tax credit directly reduces your income tax, unlike a deduction, which reduces the amount of income subject to tax. The credit then directly increases the tax refund you receive or decreases the amount you have to pay. Homeowners can receive a 10 percent credit on the costs of window film, up to $500. Installation charges do not apply.
Making it Simple
Complete IRS form 5695 and file 2009 Income Tax Returns by April 15, 2010. Forms are downloadable at www.energystar.gov, along with a list of other available energy efficiency tax credits. Maintain copies of the dealer invoice and the manufacturer's certification statement for your records.
Two Ways to Save Money
Energy efficiency can lower your federal tax bill and your monthly energy bill. Heat gained through windows makes up to 40 percent of your summer utility bill. Solar control window film reduces heat gain by 80 percent, which helps lower energy consumption. One study showed an average summer cooling cost savings of $99.
Other Important Links
- EnergyStar Web Page About Tax Credits
- IRS Form to Claim Tax Credits
On IRS form 5695, the amount spent on window film materials should be entered on line 2a (not line 2b for windows). Based on IRS Guidance, window film qualifies for the Tax Credit as an "Insulation material or system primarily designed to reduce heat loss or heat gain in your home". - EnergyStar Tax Credits FAQs
- Consumer Tax Credits Fact Sheet (Released Jan 1, 2009)
- 2009 Tax Credit-Solutia News Release (Released Jan 2, 2009)
