There is some great news for homeowners looking to implement energy reducing technologies as part of the recently passed Inflation Reduction Act. Specifically, the window film tax credit has seen some nice improvements to take note of. This particular part of the legislation is called the Nonbusiness Energy Property Credit and takes effect January 1st of 2023. This update improves and extends the tax credit for window film. The current plan will continue through the remainder of 2022.
As a note, the old credit which extends through the end of 2022 offered a 10% credit on the costs of installing insulation, windows, window film, doors, roofing, and other energy-saving improvements. There was a $500 lifetime limitation on this existing credit that still applies for the rest of 2022.
What’s New For The Window Film Tax Credit in 2023?
Starting 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. 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 2032. 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 to help reduce home energy usage and make homes more comfortable across the United States. Window film can be a cost effective solution that can be installed in most homes to make an immediate impact with very little disruption to the household.
How Do I Learn More About These Tax Credits Available For Window Film?
If you have any questions about the window film tax credit, please refer to 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.