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Federal Tax Credit for Energy-Efficient Blinds

Window coverings are not only helpful in reducing energy loss and regulating temperatures, it can also encourage savings in your overall tab bill. Here’s what you need to know about qualifications and claiming federal tax credit for energy-efficient blinds for American homeowners.
Federal Tax Credit for Energy-Efficient Blinds
Federal Tax Credit for Energy-Efficient Blinds
Did you know select window shades can qualify for a federal energy tax credit as part of the Energy Efficient Home Improvement Credit. It allows homeowners to claim a tax credit of up to 30% of the cost of qualifying energy-efficient products. Here's what you need to know about qualifying for tax credits for energy-efficient blinds.

About 30% of a home’s heating and cooling is lost through windows. Window blinds are an efficient way to lower energy costs and regulate temperature. Did you know one can save up to $1200 annually in tax credits using energy-efficient windows or blinds? The government offers federal tax credits to promote homes’ use of eco-friendly choices. In this article, you will learn about federal tax credit for energy-efficient blinds and how you can save more money by making some eco-friendly home improvements. 

Federal Tax Credit for Energy-Efficient Blinds

Federal Tax Credits for energy-efficient blinds are effective for products purchased and installed between Jan 1, 2023, and Dec 31, 2032. A homeowner can claim up to 30% of the product cost and up to $600 as the maximum credit amount. One can qualify for a tax credit from $1,200 to $3,200 annually. Such tax credits can help even middle—or lower-class people install energy-saving blinds in their homes. 

Understanding Energy-Efficient Blinds

Window coverings are helpful ways to reduce energy loss and help regulate temperatures. Most houses lose up to 30% of energy, resulting in higher energy bills. Energy efficiency can be increased by installing eco-friendly blinds in new or existing homes. They not only enhance comfort but also control daylight and glare. Energy-efficient blinds can help control temperature by day and nighttime heat loss during cold and unwanted solar heat gain when it’s hot.

Overview of the Federal Tax Credit

The Federal Tax Credit for residential energy efficiency improvements, often called the Residential Energy Efficiency Property Credit, gives homeowners incentives to make their homes more energy-efficient. Here’s an overview of this tax credit:

What it Covers:

  • The tax credit applies to qualified energy-efficient improvements to a taxpayer’s primary residence in the United States.
  • Eligible improvements may include installing energy-efficient windows, doors, insulation, roofing, HVAC systems, water heaters, and renewable energy systems such as solar panels, wind turbines, and geothermal heat pumps.
  • The credit generally covers a percentage of the cost of eligible improvements up to a certain maximum amount.

Qualifying for the Tax Credit

The eligibility requirements for a federal tax credit for energy-efficient blinds include:

  • The product must be bought and installed between Jan 1, 2023, and Dec 31, 2032.
  • The product is eligible for 30% of the purchase price.
  • One can get up to $1200 in tax credit annually by taking the benefit of a federal tax credit.

How to Claim the Tax Credit

If you’re eligible for a federal tax credit for energy-efficient home improvements, including blinds, here are general steps to claim the credit:

Determine Eligibility: Confirm that the energy-efficient blinds you purchased meet the tax credit eligibility criteria. 

Gather Documentation: Collect all relevant documentation to support your claim, including receipts, invoices, and manufacturer certifications.

Complete IRS Form: The Federal Energy Credits form claims various residential energy credits, including those for energy-efficient home improvements. 

Calculate the Credit: Follow the specific instructions provided on the form to ensure accurate calculations.

Transfer Credit to Tax Return: Once you’ve completed Form 5695 and calculated the total tax credit amount, transfer this amount to the appropriate line on your federal income tax return. 

File Your Tax Return: When you file your federal income tax return with the IRS, include Form 5695 and any other required documentation. 

Cost-Benefit Analysis

Energy-efficient blinds are not only cost-saving but also environmentally efficient. One can reduce a home’s overall carbon footprint and provide quite significant savings in the long run. Here is a cost-benefit analysis of energy-efficient blinds: 

  • It can help you reduce energy bills.
  • It can provide several tax benefits.
  • It can help you increase your overall house value, providing long-term cost savings.
  • Besides cost benefits, it is also environmentally friendly and reduces carbon emissions.

Read related blog: Federal Tax Credit for Tankless Water Heater

Conclusion

Investing in the right tech at the right opportunity is a great way to contribute to sustainability. Financial decisions based on saving about 15% of household energy consumption can reduce energy bills. Also, with federal tax credits and other benefits, one can save economically using energy blinds.

The government covers 30% of the purchasing price of energy-efficient blinds and encourages every household to use this technology to minimize energy loss. Furthermore, Beem is here to help you file your taxes at the best price while ensuring you get the maximum refund. You can also use Beem’s Free Tax Calculator to get a quick and accurate estimate of your federal and state taxes.

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Author

Picture of Prem Kishan

Prem Kishan

A seasoned Product Manager who thrives on making a meaningful impact within the organization, Prem is deeply passionate about tackling intricate problems using cutting-edge technology and is a specialist in tax content.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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