Home Maintenance Series – Tax Credits for Energy-Efficient Window Coverings

Did your window coverings come with a certification for energy savings? If so houselogic.com says you could get back up to $500 on your taxes for that!

Your energy-efficient window coverings may qualify for a federal tax credit if the manufacturer provides a valid certification statement.

Your insulated window coverings, such as blinds and drapes, may be eligible for a $500 tax credit, but take a deep breath before you go out and celebrate. Although the IRS has a pretty wide definition of “insulation,” it doesn’t specifically mention window coverings.

But it doesn’t exclude them, either. Some companies, such as Hunter Douglas, say certain coverings they make are eligible and back up their claims by issuing a manufacturer’s certification statement saying so. Some tax experts believe that because these coverings don’t provide insulation as their main purpose, the IRS will eventually strike down these certifications.

Do your energy-efficient window coverings qualify?

If a company provides a certification statement, you’re almost certainly OK — for now. Even if the IRS later denies the company’s claim, it’s unlikely you’ll lose your credit retroactively.

Window coverings that currently may qualify for the federal tax credit include:

  • Honeycomb shades
  • Plantation shutters
  • Draperies, especially those identified as “insulated drapes”
  • Window films with insulating properties

Avoid tax hassles later

  • Always insist on a manufacturer’s certification for energy-efficient window coverings you purchase. Ads and smiling handshakes just aren’t good enough.
  • Don’t assume that if one company is giving a manufacturer’s certification, a similar product from another company is also covered.
  • If the IRS forces a company to withdraw a product’s certification and you buy it after the cancellation, you can’t say, “You used to certify it, so I’m still covered.”

What to do with a certification statement

You won’t have to submit the certification statement with your tax return, but you’ll need it and a copy of the sales receipt for your records. Stash your statement with your important papers for the year, and file IRS Form 5695 with your tax return.

About gvenice

I have over 25 years of electrical engineering and business management experience. I previously owned and managed a multi million dollar engineering firm. My work took me all over the globe, managing the construction of manufacturing plants where I built a reputation of providing superior service, getting projects done on time and within or under budget. My dedication to the fine details and logical approach to accomplishing tasks provide a huge benefit to my Real Estate clients. After selling my business and retiring to this area, I found a new passion in the Real Estate business and I bring to this business the same level of professional skill and conduct that has made mr successful in the past. My global exposure and extensive travel are also an asset when dealing with a customer base that is located worldwide. An avid boater, I have a thourough understanding of the waterways of East Tennessee and the intricacies involved in dealing with the TVA and the Army Corps of Engineers.
This entry was posted in Energy Efficiency, Home Buyers Series, Home Maintenance Series, Home Outdoors Series, Home Owners and tagged , , . Bookmark the permalink.

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