New Tax Credit for Window Film
The Energy Policy Act of 2005 created federal tax cuts for consumers who make certain energy-efficient improvements to their home. Since 2006, window film has been added to the list of improvements. Now anyone who has purchased qualifying Huper Optik®solar control window film products between Jan. 1 and Dec. 31, 2008 can receive a 2008 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.
Making it Simple
Complete IRS form 5695 and file 2008 Income Tax Returns by April 15, 2009. Forms are downloadable at www.energystar.gov, along with a list of other available energy efficiency tax credits. Maintain copies of the dealer invoice and the manufacturer’s certification statement for your records.
Two Ways to Save Money
Energy efficiency can lower your federal tax bill and your monthly energy bill. Heat gained through windows makes up to 40 percent of your summer utility bill. Solar control window film reduces heat gain by 80 percent, which helps lower energy consumption. One study showed an average summer cooling cost savings of $99.
Other Benefits of Window Film
In addition to money savings, window film can increase indoor comfort, reduce fading of your home furnishings, and protect your family against harmful UV rays. Window film is also energy efficient. According to the Alliance to Save Energy, energy efficiency is the quickest, cheapest, and cleanest way to extend our world’s energy supplies.