TAX CREDITS FOR WINDOW FILM

Take advantage of federal incentives under the Inflation Reduction Act (IRA) to reduce the cost of your solar control window film installation. By improving your home’s energy performance, you may qualify for a 30% tax credit on up to $600 of eligible window and skylight expenses each year.

The IRA revamped and extended the former nonbusiness energy property credit (Section 25C) into the Energy Efficient Home Improvement Credit, effective for qualified expenditures made after January 1, 2023, through December 31, 2032. This credit covers a variety of building-envelope upgrades—windows, doors, insulation, and more—aimed at reducing heat loss and solar heat gain.

Under IRS guidance, window film that is “specifically and primarily designed to reduce heat loss or gain” counts as an insulation material or system for tax-credit purposes. Properly rated solar control films meet the performance criteria set by energy‐efficiency codes and can be claimed alongside other envelope improvements.

• Credit Amount: 30% of the cost of qualifying improvements
   
• Annual Caps:
   
• Exterior windows & skylights (including film): $600 maximum per tax year IRS
   
• Exterior doors: $250 per door, up to $500 total
   
• Insulation materials & air sealing: $1,200 combined
   
• Lifetime vs. Annual: The IRA replaces the lifetime limit with an annual cap, letting you claim up to $600 for windows and window film each year through 2032

1. Verify Product Eligibility
    
   • Confirm with your installer or manufacturer that the film meets energy‐efficiency performance standards and qualifies under IRS rules.
      
   • Look for NFRC labels or Energy Star listings for “windows and skylights.” IRS
      

1. Gather Documentation
    
   • Save purchase receipts, invoices, and manufacturer performance data sheets.
      
   • Retain any NFRC/Energy Star labels from your windows or film packaging.
      

1. Complete IRS Form 5695
    
   • Use Part II of Form 5695 to report qualified energy‐efficiency improvements and calculate your credit.
      
   • Enter the smaller of your total qualifying expenses or the applicable annual cap ($600 for windows/film) on Line 31 IRS.
      

1. File with Your Return
    
   • Include Form 5695 with your federal income‐tax return (Form 1040).
      
   • Keep all supporting documents for at least three years in case of an IRS audit.

Q: Does tinted film qualify, or only clear film?
A: Both clear and tinted solar control films qualify, provided they meet the performance criteria for reducing heat gain or loss. Always confirm eligibility with your installer.

Q: Can landlords claim this credit for rental properties?
A: No. The credit applies only to the taxpayer’s primary residence in the United States; second homes and rental properties are ineligible IRS.

Q: What if I exceed the $600 window cap?
A: Any qualified window or film expenses above $600 can be carried forward and claimed in subsequent tax years through 2032, subject to that year’s cap.

Q: Are there state or utility rebates in addition to the federal credit?
A: Many states and utilities offer complementary rebates for energy‐efficiency upgrades—check DSIRE or your local utility for details