Window tinting can mean a tax credit
By Kay Bell • Bankrate.com

With the promise of cash back from Uncle Sam, homeowners flocked for the last few years to home-improvement stores for products to make their residences more energy efficient. By adding insulation, installing new windows or converting to a solar water heater, many homeowners recouped on 2006 returns, and might be able to do so again on their 2007 tax filings, part of their energy-saving upgrade costs via a tax credit.

But window film, a relatively easy fix that typically costs only a fraction of replacing a home's drafty old windows, was overlooked by most homeowners. The reason: Window tinting wasn't specifically mentioned as an eligible tax credit option under the Energy Tax Incentives Act of 2005.

The word finally got out in late 2006 when the Internal Revenue Service told the window film industry that its product does indeed fall under the category of "other" energy saving home improvements.

The slow start for the window film write-off means that many homeowners didn't take advantage of the energy improvement before the installation deadline arrived on Jan. 1. But if you did add this simple and cost-effective upgrade to your home's windows last year, be sure to claim the credit if you can on your 2007 return.

Window film meets the energy standards because it can help reduce a home's air conditioning needs. According to California Energy Commission calculations, 30 percent of a structure's cooling requirements are due to solar heating through windows and door glass.

"Applying solar control film to glass rejects up to 80 percent solar energy, and can reduce your energy costs between 30 percent and 50 percent," says Robert Kerr, president of Epic Glass Tinting, which has operations throughout California. "It's a win-win situation, especially with the new tax credit."

The win for the homeowner is a 10 percent tax savings on the cost of solar-control window film. Because it's a tax credit, the consumer gets a dollar-for-dollar tax bill reduction.

Slow start for film
For most of 2006 when the new tax credits first appeared, window film manufacturers didn't get a chance to tout the tax break along with their product's energy-saving benefits.

"It was late November 2006 before we got a positive response from the IRS," says Darrell Smith, executive director of the International Window Film Association. "Then we had a couple of weeks when we reconfirmed that our and their understanding was the same. In early December, we notified our manufacturers that they could go ahead with certifying products."

The Martinsville, Va.-based trade association spearheaded the effort to make sure window film is tax-break eligible. But that was only the first step, and it doesn't mean that every window film on the market will get you the tax credit.

Mapping your tax credit
The first step is for the manufacturer to determine which product qualifies, and that is a comprehensive process. Window film is created to meet the conditions of eight U.S. climate zones, ranging from the northern reaches of Alaska to the island locales of Hawaii, Puerto Rico, Guam and the Virgin Islands.

Maps of the zones are available at several manufacturer Web sites, including a color depiction at Madico and a larger, black-and-white version in 3M's window film certification document.