Article by Patric Fransko
Homeowners looking to adopt energy-saving technologies are in for some excellent news, thanks to the recently passed Inflation Reduction Act. One significant change to note is the improvements made to the window film tax credit. Under the Nonbusiness Energy Property Credit, which took effect on January 1st, 2023, the legislation now offers expanded benefits for those installing energy-efficient window films.
Notably, this update not only enhances the tax incentives but also extends them through 2032, making it a great time for homeowners to invest in energy-reducing window films. By improving energy efficiency, these films can help lower heating and cooling costs while contributing to a more sustainable home environment. With tax benefits now lasting for nearly a decade, homeowners can take full advantage of long-term savings while making their properties more energy efficient.
What is The Current Window Film Tax Credit for 2025 Filing?
The current tax credit started in 2023, a new $1,200 annual tax credit limit is set to replace the existing $500 lifetime limit. The tax credit will be equal to 30% of the costs for all eligible home improvements made during the year. You can claim the credit for improvements made through 2032.
As an article in Kiplinger notes, “if you spread out your qualifying home projects, you can claim the maximum credit each year. The annual limits for specific types of qualifying improvements will also be modified – and for the better.”
The Energy Star website has a great deal of information and will continue to be updated regularly. Their most recent update is as follows:
“As part of the Inflation Reduction Act of 2022 signed into law on August 16, 2022, residential energy efficiency tax credits have been extended through 2023. This information applies to the existing tax credits for 2022. Changes to residential energy efficiency tax credits under the Inflation Reduction Act will become effective starting in 2023. Please bookmark this page, as we will be updating the information here by the end of the year.”
Kiplinger states “If you’re planning a few home improvements that will boost the energy efficiency of your house, you may save some money on your projects now that the Inflation Reduction Act has been signed into law. One of the bill’s main goals is to address climate change and slow down global warming. And while the legislation primarily helps businesses adopt more eco-friendly measures and jump-start clean energy production, there are incentives for ordinary Americans to go green and save some green, too
….homeowners can cut their tax bill even more if they install new energy-efficient windows, doors, water heaters, furnaces, air conditioners, and the like. That’s because the legislation extends and enhances two tax credits that reward “green” upgrades to your home.”
All said, this seems to be terrific news as it relates to integrating window film technology to help reduce home energy usage and make homes more comfortable across the United States. Residential window film can be a very cost effective solution that can be installed as a retrofit in most homes to make an immediate impact with very little disruption to the household.
How Do I Learn More About The Window Film Tax Credit Available?
We are certainly not an accounting firm or a tax accountant, so if you have any questions about the window film tax credit, please refer to the Energy Efficient Home Improvement Credit on the IRS website or contact your tax experts to see how it applies to you. These credits will be taken using IRS Form 5695 as seen above.
If you would like to arrange a free, no obligation assessment of your home and how window film can help, click HERE or contact one of our Window Film Pros to schedule a consultation and estimate on this cost effective home improvement.