Window tinting can mean a tax credit |
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Generally, manufacturers produce different types of
products for each zone, and some window-film makers might find that
some tints don't meet the standards. Even when film does qualify,
a manufacturer might decide not to tax-certify every product line
for business or marketing reasons; for example, a company might
opt to certify only its more exclusive window films.
That means the consumer must carefully check the product's
packaging or the company's Web site for verification that the film
meets the energy-efficiency tax credit standards. According to the
IRS, customers typically can rely on such manufacturer information
in claiming the credit.
Picking
your price range Consumers also will want to determine if they have
price choices between various tax-approved window tints. The
film generally runs from $3 to $12 per square foot. But the types of windows it
covers will determine your ultimate cost.
Larger panes will cost you less because installation
is easier. Consider, for example, a patio door with two panels,
one stationary and one that slides. The total square footage for
an average 6 foot door opening is 36 square feet. That's a lot of
film, but it's going on just two large panes.
However, if your patio
entrance is a French door with 36 individual panes, your price for window film
escalates because the installer will apply tint to many more, smaller individual
panes. Another factor to remember: Only the price of the film,
not the installation expense, is eligible for the credit. So if you choose a less
expensive film to offset the application costs, it won't help you on your tax
return.
Also keep in mind that the tax credit for window tinting
is limited to $500, and that cap amount includes any previous energy efficient
upgrades you made in this general energy-efficiency category last year. So if
you took a $400 credit on your 2006 return for insulation, you've only got $100
left to apply to your 2007 tax bill.
Claiming
the credit If, however, you find that you can claim the tax credit this
filing season, the process is relatively
simple. Dig out your original invoice showing how much you paid
for the window film. Make sure it differentiates between the film itself and any
installation costs. Download the manufacturer's certification
statement for your climate zone from the company's Web site or make sure the information
is included in the film's packaging. You don't need to send
any of this documentation to the IRS, but you will want it for your records if
the agency subsequently questions your credit claim. Then submit IRS
Form 5695 with your Form 1040 to claim the credit for your window tinting. And if you didn't get all your windows tinted last year, keep an eye on Congress. There's been talk of reauthorizing the tax break for window film and other relatively simple home energy efficiency improvements for 2008. You might get another tax credit chance next year, too. |