Tax Credit for Energy Efficient Window Coverings

Your insulated window coverings, such as blinds and drapes, may be eligible for a $500 tax credit. Some companies, such as Hunter Douglas, say certain coverings they make are eligible and issue a manufacturer’s certification statement. However, some tax experts believe that because these coverings don’t provide insulation as their main purpose, the IRS will eventually prohibit these certifications.

If a company provides a certification statement, your tax credit should be approved. Even if the IRS later denies the company’s statement later, it’s unlikely you will 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

Always insist on a manufacturer’s certification for energy-efficient window coverings you purchase. 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 not rely on the fact that it was once covered by a certification and claim the tax credit.

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

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