WINDOW FILM INSTALLATIONS MAY QUALIFY FOR 2006/2007 RESIDENTIAL ENERGY TAX CREDIT

The window film industry has been informed by the Internal Revenue Service that manufacturers of solar control window films may begin certifying that certain of their products qualify for the energy tax credit treatment under Section 25C of the Internal Revenue Code. To certify their products, manufacturers must meet guidelines proposed in a presentation made to the IRS by Darrell Smith on behalf of both the AIMCAL-Window Film Committee and the International Window Film Association. This is a tax credit rather than a reduction in taxable income, and is available for all qualifying film purchased and installed between January 1, 2006 and December 31, 2007. Consumers will be able to claim a tax credit equal to 10% of the film materials, up to a maximum of $500 for qualifying products.

Individual manufacturers may decide which of their products, as installed on which types of windows, they wish to certify for qualification for the tax credit. In addition, each manufacturer will make copies of its certification statement available either thru its dealers and distributors or directly to consumers, by mail or in downloadable form on its website for use in claiming the tax credit. Consumers will need to retain a copy of the invoice for the film (with film materials and installation charges separated, as the credit is for film only) and the manufacturer’s certification statement in their personal records as documentation for taking the tax credit.

The Energy Policy Act of 2005 created federal tax cuts for consumers who make certain energy-efficient improvements to their home. For 2006, window film has been added to the list of improvements. Now anyone who has purchased qualifying LLumar®, Vista®, or Gila® brands of solar control window film between Jan. 1 and Dec. 31, 2006 can receive a 2006 tax credit. For those who have not yet purchased film, they still have time. Purchase the product before Dec. 31, 2007 to receive a 2007 tax credit.

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.