Great news, the $500 Federal Tax Credit for home window film is back!

This tax credit is available for up to 10% of the amount paid for qualified residential energy efficiency improvements, including window film. The installation has to be completed in the tax year of either 2019 or 2020. This tax credit may also be available for the 2018 tax year with an amended tax return. This credit us good for up to $500.

As far as qualifying window film, the inclusion reads:

“Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2019 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the component meets certain energy standards.

  • Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.”

A couple of things to keep in mind is:

  • This tax credit is cumulative for a total, combined, credit limit of $500 for all tax years following 2005
  • This is a tax credit, not a tax deduction. That means the credit will come off of what taxes you owe, dollar for dollar
  • You will need to file IRS tax form 5695, instructions for form 5695 can be found here