The Inflation Reduction Act has expanded the window film tax credit, which is still available for the 2022 filing season. The credit extends through the end of 2022. It offers a 10% credit for installing various energy-saving improvements such as windows, doors, roofing, insulation, and window film. A $500 lifetime limitation on this existing credit applies until the end of 2022.
Starting in 2023, a new $1,200 annual tax credit limit will replace the existing $500 lifetime limit. In addition, the updated Nonbusiness Energy Property Credit will also improve and extend the tax credit for window film, which will equal 30% of the costs for all eligible home improvements made during the year. You can claim the maximum credit each year if you spread out your qualifying home projects. The Energy Star website will continue providing updated tax credit information.
The Inflation Reduction Act aims to address climate change and slow global warming by incentivizing individuals and businesses to adopt more eco-friendly measures. For example, homeowners can save money by installing energy-efficient upgrades such as windows, doors, water heaters, furnaces, air conditioners, and window film. This is excellent news for those looking to reduce their energy usage and make their homes more comfortable.
To learn more about these tax credits available for window film, refer to the IRS website or contact your tax experts.