Window Film Tax Credits
Residential energy upgrades
Window film purchased in 2012 through 2013, could be eligible for tax credits up to $500.
The American Taxpayer Relief Act of 2012, passed by Congress on January 2nd, reinstated the energy tax credit for certain window film installations which expired in December, 2011.
The limit is 10% of the film cost up to a maximum of $500. A list of qualifying films can be found on the following pages.
How to Apply for Your Residential Tax Credit:
- Complete IRS form 5695 to include with your Tax Return. Forms are downloadable at www.energystar.gov along with a list of other available energy efficiency tax credits.
- You will need to have a copy of the dealer invoice listing the cost of the film (not the installation) and also a copy of the Manufacturer’s Certification Statement to include with your records.
- Click to download a copy of the Manufacturer’s Certification Statement
Commercial building energy upgrades
EPAct provides attractive tax incentives through December 31, 2013, for specific energy improvements including window film to commercial buildings.
Energy Savings Credit
Earn EPAct tax credits by saving energy with Solar Gard
The 2009 American Recovery and Reinvestment Act
To promote energy-efficiency and conservation, the 2009 American Recovery and Reinvestment Act extended the tax benefits from the Energy Policy Act of 2005 (EPAct) through 2013. EPAct provides attractive tax incentives for installing specific energy improvements to commercial building property.
The act is designed to reward businesses that implement more than one technology or product. While a one-time partial tax deduction is available for an upgrade of any one system (lighting, HVAC, and building envelope), additional technologies can net far greater tax incentives. The goal is to encourage building owners to identify as many energy savings opportunities as possible.
Window film is a very attractive technology due to its ease of implementation and relative low cost and is classified in the building envelope category. By itself, window film can provide from 5% to 15% savings of total energy used, but likely will not meet the minimum energy savings threshold required to qualify for the tax deduction.
However, when implemented in combination with other products and technologies (such as lighting or HVAC, which can each net a savings of up to 50%) window film can provide a significant boost in the deduction amount available to building owners because they can claim multiple energy savings technologies and apply for higher deduction amounts, up to the $1.80 maximum allowed per square foot.
Summary of details:
- EPAct Tax Credit covers 10% of material costs, up to $500
- The total deduction is limited to $1.80 per square foot of the property:
- .60 cents per square foot for Building Envelope measures which include Solar Control Window Films.
- .60 cents per square foot for lighting and electrical upgrades.
- .60 cents per square foot for HVAC.
- Commercial projects require that savings are proven with a report by Professional Engineer (PE) using Official Department of Energy software.
- 2012 Application Form not yet published by EnergyStar, expected later in 2013.