Window Film Tax Credit: Can Solar Window Film Impact Your Tax Return?

Window Film Tax Credit: Can Solar Window Film Impact Your Tax Return?

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Window Film Tax Credit3M™ window films can provide significant benefits to both your home and your wallet. Not only does properly-installed window film help protect against dramatic temperature swings and interior fading, but such investments can also help put extra money in your pocket in the long-run. 

While the ROI of window film often comes in the form of reduced heating and cooling bills, the savings earned from window film tax credit isn’t talked about nearly enough. This post will go into detail about how solar window film can positively impact your tax return and help pay for themselves.

3M Window Film Tax Credit

While a lot of buyers see the energy-saving advantages of purchasing 3M window film, they don’t always take into consideration other opportunities to recoup their investment. The primary advantage of this is the tax credits available for window film installed in residential buildings. Under current legislation, you can claim 10% of the film cost up to an amount of $500.

For solar films, the tax advantages are even greater. The US Department of Energy allows you to claim up to 30% of the cost, including installation fees. While no upper limit is in place for the equipment, the maximum credit for fuel cells is $1,000 per kilowatt. Combine these 3M window film tax credits and you’re looking at significant savings that make it an even more appealing investment.

Required Documentation

To be entitled for the initial 10% credit, homeowners will need to fill out IRS Form 5695 and submit it with their property owner’s tax return. You will also need to submit a copy of the supplier’s invoice as well as the manufacturer’s certificate information. For most jobs, this 10% credit will get you very close to the $500 maximum.

Decreased Energy Bills

While everyone loves the idea of free tax credits, a decrease in your monthly bills can be even better financially. The average home wastes roughly $750 on energy each year, largely because glass is a relatively poor insulator of heat. By implementing the proper energy saving window film, you can easily reduce the energy transferred through your windows by 78%.

In turn, this reduces the need to run the air conditioner as much and will very likely lower your cooling bill. This can lead to a significantly reduced energy bill over the 20-30 year life of your window film. Especially if you’ve purchased a quality film on the front end, these savings will definitely add up.

Increased Home Resale Value

The third key area where 3M window films can really help out financially is by improving the resale value of your home. Understandably, many prospective homeowners are likely to ask a lot of questions before making their first purchase. One of the most common questions surrounds the recent utility bills, which 3M window film can significantly reduce!

An energy efficient home is much more attractive to buyers. Even if you aren’t looking to sell right now, it provides great peace of mind. While this isn’t the same as the 3M window film tax credit, the financial advantage will ultimately be significantly greater.