Alerts

The tax credit has been extended through December 2010. You may find more information at the following Web sites:

http://www.windowfilmtaxcredit.com/

http://www.madico.com/WindowFilms/MediaCenter_TaxCredit.asp

http://www.panoramafilm.com/About/Tax_Credit

http://solutions.3m.com/wps/portal/3M/en_US/WF/3MWindowFilms/CustomerSupport/TaxCredit/

http://www.tintaxcredit.com/

UPDATE ON STIMULUS BILL EFFECT ON

RESIDENTIAL TAX CREDIT FOR WINDOW FILMS

(Updated and published March 12, 2009)

Amount qualifying for credit which was 10% of film cost up to maximum total credit of $500 is increased retroactively for qualifying window film installations to January 1, 2009, to 30% of film cost up to maximum total credit of $1,500. This credit is in addition to any credit used in previous years.

The tax credits for qualifying window film installations have been extended through the end of 2010, but the stringency for installations to qualify became more difficult beginning February 17, 2009.

Credits can only be taken for installation of window film products certified by the product manufacturer as qualifying for such credits. The consumer should be instructed to check the manufacturer’s website and/or other published information to verify the products being purchased do in fact qualify. Effective February 17, 2009, many products which previously may have qualified will not be listed as qualifying after that date due to increases in stringency of energy efficiency requirements for fenestration and insulation which go into effect at that time, since the new standard for compliance for films will be the 2009 International Energy Conservation Code (IECC).

All questions on whether specific products and installations will qualify should be answered by the window film manufacturer or its agents. The IWFA can only answer general questions about the credit itself and not about specific products or uses. In addition, the IWFA does not offer legal tax advice to the industry or the public, so all manufacturers and consumers should check with their own tax professional or legal counsel for advice on their particular situations.

WINDOW FILMS QUALIFY FOR TAX CREDIT IN 2009

On October 3, 2008, President Bush signed into law the “Emergency Economic Stabilization Act of 2008.” This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and non-solar water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit. The home improvement tax credits apply for improvements “placed in service” from January 1, 2009, through December 31, 2009.

After a review of this legislation and its implications for the window film industry, the International Window Film Association (IWFA) has determined that window film again may qualify for consideration for the tax credit. A description below explains all the considerations. Of course, the IWFA cannot give specific tax advice to any individual, so check with your tax advisor if you have any questions about whether you qualify to use this credit.

Window film qualifies as “insulation”. The installed window film in combination with the window on which it is installed must meet the 2000 IECC and Amendments which would be the 2004 Supplement to the 2003 IECC.

Except for the change of date in the “placed in service” requirement, this is the same criteria as for the credit in 2006/2007 tax years.

Insulation

Meets 2000 IECC & Amendments

10% of cost, up to $500

For insulation to qualify, its primary purpose must be to insulate. Definition of insulation is a material or system which becomes part of the building envelope and has the primary designed benefit to reduce solar heat gain or heat loss through the building envelope

Must be expected to last 5 years OR have a 2 year warranty

Installation costs are not included.

Manufacturer's Certification Statement required.

For tax purposes, save your receipt and the Manufacturer's Certification Statement.

Use IRS Form 5695

Must be “placed into service” between Jan. 1–Dec. 31, 2009

Each window film manufacturer must decide which of its products qualify for the credit when used in each climate zone of the energy code listed above. A Manufacturer’s Certification Statement must be made available to the taxpayer (either by the installing dealer or manufacturer or from the manufacturer’s website) who purchases the qualifying window film. This statement and a copy of the invoice should be retained by the taxpayer for his/her records, although it is not required to be filed along with the IRS Form 5695 at the time of tax filing. To find out which films qualify from a particular manufacturer, you must check with that manufacturer or its representatives. No one else can make the determination for the manufacturer of which products it chooses to certify for the tax credit use.

If credit is claimed for a film which does not have a Manufacturer’s Certification Statement, the taxpayer may be charged and found guilty of committing tax fraud; the same would be true of a manufacturer, distributor or dealer misrepresenting that a certain product qualifies for the tax credit when in fact it does not.

HOME

SITEMAP