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.
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.