Federal Tax Credit
Plantation Shutters DO NOT QUALIFY for Federal Energy Tax Credit (up to $1500 tax credit)
Read why plantation shutters don't qualify for the Federal Energy Tax Credit
In order for a product or product category to be covered by the credit, the product must be primarily designed to reduce heat loss or gain of a dwelling unit in or on the dwelling unit. [i.e. insulation is "primarily" designed to reduce heat loss or gain; and while a byproduct of a window covering may be energy efficiency, it is not the product's primary design] For example, page 3 of the IRS Bulletin .03 "Specifically and Primarily Designed" This section explains that drywall or siding [even though they provide an "R" value] would not qualify because these products primary function is to provide structural support.
In order for a product or product category to be covered by the credit, the product must be established and mentioned in the 2009 International Energy Conservation Code (IECC). Plantation Shutters are not mentioned.
If a manufacturer of a window covering is making the claim that their product qualifies as a window improvement, the products performance must be recognized by the NFRC and window treatments are not recognized by the NFRC. The product must also provide a .30 "U" Factor and .30 Solar Heat Gain Coefficient.
On page 4 of the IRS Bulletin .07, the code states that a "manufacturer must retain a record of its National Fenestration Rating Council rating." ASK ANY PLANTATION SHUTTER COMPANY CLAIMING TO HAVE A $1500 TAX CREDIT TO PRODUCE THEIR NFRC RATINGS.
Here is a copy of a letter from Allison Dennis with the EPA:
"We are quite sure window treatments are not covered by the tax credit."
"The IRS has not issued specific guidance on this issue yet. However, window treatments are most likely not covered by the tax credits because they do not meet the requirements of the law. They must be 'specifically and primarily designed to reduce heat loss or gain' – and window treatments are specifically and primarily designed for decoration and privacy; and they must meet the 'prescriptive criteria of the 2009 IECC' – and window treatments are not mentioned in the 2009 IECC. In addition, window treatments are not a permanent part of the building envelope and their energy saving performance is climate and season dependent and very highly dependent on the behavior of the occupant."
Martha McRee, an IRS representative, also believes that interior mounted window coverings do not apply for tax credits.
Please read her bulletin: http://www.irs.gov/irb/2009-25_IRB/ar10.html
- Plantation Shutters do not qualify for the tax credits!