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, 2010
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.
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, 2010
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.
| 2009 TAX CREDIT FOR RESIDENTIAL TINTING |
2006 Custom Tints Inc.
