Commercial Tax Deduction on Window Film?

Does any one know about the Tax Deduction on window film? Specifically talking about the Commercial side. I just had an hour conversation with the IRS about the type of deduction or incentives there is once film is applied to a building. They could not clarify and got put on hold and got hunged up on. Energy Star has a report out on Tax Deduction for Commercial Buildings but does not specify window film? It only states under building envelope, lighting, heating and cooling systems.
My whole reason for this question is because i have a very large account that is pending on this information. Any input would be helpfull thanks guys.

bet that was fun.

I could be wrong as I am quite often, but I believe the "tax credit" discussed at length here ONLY applies to res. work there may be some kind of deduction available for commercial film installations in the energy act of ought 5 which I think was extended to 2013, seem to remember seeing something about it anyway the whole freaking "tax credit" thing has been turned into a giant crock of shiot and not worth the trouble but thats just me.

As I understand it it is residential only.

I deducted my windows, water heater, insulation and i forget what else when i built my house last year. I will have to check on tint deduction, I slammed em with solar bronze-it dam sure helps and looks awesome!

FROM IWFA:
UPDATE ON STIMULUS BILL EFFECT ON

RESIDENTIAL TAX CREDIT FOR WINDOW FILMS

(Updated and published March 12, 2009)

Amount qualifying for credit which was 10% of film cost up to maximum total credit of $500 is increased retroactively for qualifying window film installations to January 1, 2009, to 30% of film cost up to maximum total credit of $1,500. This credit is in addition to any credit used in previous years.

The tax credits for qualifying window film installations have been extended through the end of 2010, but the stringency for installations to qualify became more difficult beginning February 17, 2009.

Credits can only be taken for installation of window film products certified by the product manufacturer as qualifying for such credits. The consumer should be instructed to check the manufacturer’s website and/or other published information to verify the products being purchased do in fact qualify. Effective February 17, 2009, many products which previously may have qualified will not be listed as qualifying after that date due to increases in stringency of energy efficiency requirements for fenestration and insulation which go into effect at that time, since the new standard for compliance for films will be the 2009 International Energy Conservation Code (IECC).

All questions on whether specific products and installations will qualify should be answered by the window film manufacturer or its agents. The IWFA can only answer general questions about the credit itself and not about specific products or uses. In addition, the IWFA does not offer legal tax advice to the industry or the public, so all manufacturers and consumers should check with their own tax professional or legal counsel for advice on their particular situations.



WINDOW FILMS QUALIFY FOR TAX CREDIT IN 2009

On October 3, 2008, President Bush signed into law the “Emergency Economic Stabilization Act of 2008.” This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and non-solar water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit. The home improvement tax credits apply for improvements “placed in service” from January 1, 2009, through December 31, 2009.

After a review of this legislation and its implications for the window film industry, the International Window Film Association (IWFA) has determined that window film again may qualify for consideration for the tax credit. A description below explains all the considerations. Of course, the IWFA cannot give specific tax advice to any individual, so check with your tax advisor if you have any questions about whether you qualify to use this credit.

Window film qualifies as “insulation”. The installed window film in combination with the window on which it is installed must meet the 2000 IECC and Amendments which would be the 2004 Supplement to the 2003 IECC.

Except for the change of date in the “placed in service” requirement, this is the same criteria as for the credit in 2006/2007 tax years.

Insulation

Meets 2000 IECC & Amendments

10% of cost, up to $500

For insulation to qualify, its primary purpose must be to insulate. Definition of insulation is a material or system which becomes part of the building envelope and has the primary designed benefit to reduce solar heat gain or heat loss through the building envelope

Must be expected to last 5 years OR have a 2 year warranty

Installation costs are not included.

Manufacturer's Certification Statement required.

For tax purposes, save your receipt and the Manufacturer's Certification Statement.

Use IRS Form 5695

Must be “placed into service” between Jan. 1–Dec. 31, 2009



Each window film manufacturer must decide which of its products qualify for the credit when used in each climate zone of the energy code listed above. A Manufacturer’s Certification Statement must be made available to the taxpayer (either by the installing dealer or manufacturer or from the manufacturer’s website) who purchases the qualifying window film. This statement and a copy of the invoice should be retained by the taxpayer for his/her records, although it is not required to be filed along with the IRS Form 5695 at the time of tax filing. To find out which films qualify from a particular manufacturer, you must check with that manufacturer or its representatives. No one else can make the determination for the manufacturer of which products it chooses to certify for the tax credit use.

If credit is claimed for a film which does not have a Manufacturer’s Certification Statement, the taxpayer may be charged and found guilty of committing tax fraud; the same would be true of a manufacturer, distributor or dealer misrepresenting that a certain product qualifies for the tax credit when in fact it does not.

so there is no type of tax break on commercial?

Sounds like the last time I was at the DMV. They can cram it where the sun doesn't shine.

DMV should be DMF "Dept. of mother ----------"

there is only a tax credit for residential. but in some states there are out side rebates through you electric providers.

If you read the manny lsitings on films, most do not qualify in most areas of the country (it is area specific, ie Northeast gets pretty much nothing) and the film has to be combined with specific low E glass panels. Since most homes do not have the qualifying low E glass to start, there isnt anyway to get the rebate. Read through the manny websites(Madico has it up) and see.

In most regions the glass has to be Low E2 to even have a prayer of getting that tax credit. A lot of homes in northern regions have Low E but very few have Low E2.

I am attending the webinar here in a short bit to see more I can learn. So far, as I understand there is very little film that qualifies (in my zone) and you can not take the credit if you are claiming another.

Sounds like wonderful pamphlet reading, but no where in there does it say that Spanarama gets any tax credit..... Read the actual law and you will see that mannys have to get their films rated for the rebate and list it on their sites. THEN it also has to be combined with low E2 window glass and that throws the rebate right out the window.......................It really seems to be a NON-news worthy item...................

Actually EPAct can help with tax credits, I have helped a couple of commercial buildings with it, along with retrofit partners. The hardest part is finding a certified, qualified contractor to create the required simulations with the approved software packages. However, if you do a little rooting around you will find that some certified contractors in your area that are low on work during the recession will probably help you out.

It is more complicated (since the dollar value of the benefit is much higher, and commercial jobs are more complicated in general). This can be achieved by bundling several products, lights + film, film + roofing, etc, into a 16.66% energy use reduction or better for the first tier of rebate. Film usually can't do it alone, but nor can reflective roofs and stripping. However, together these often add up to enough savings so they can get a solid return on investment. We have pulled ROI for building owners under 1 year, with EPAct offsetting cost of install.

It is definitely more complicated than residential tax credits, and requires networking and a new skill set, but if you are savvy and do a lot of commercial it is worth partnering with someone to go after these EPAct jobs.

Incidentally Customtinting, there is no prequalification for film for commercial rebates, nor glass requirements. Only the end savings are important for qualification.

There is something on commercial. Know one understands it enough to have any info on it so it is not being promoted by the manufactures. Also on some commercial they have to cut there energy usage by 50% so they have been looking at film.