Window Treatment Tax Credits

In an effort to uncover the same good news that many window covering manufacturers have found regarding interior mounted window coverings qualifying for tax credits, we decided to call four individuals who work for the government and are authorities on the topic; Ray McGowan with the National Fenestration Rating Council (NFRC), Allison Dennis & Doug Anderson with Energy Star / Environmental Protection Agency (EPA) and Martha McRee, of the Office of Associate Chief Counsel with the Internal Revenue Service. Ms. McRee is the principal author of IRS Bulletin 2009-25 addressing this very topic. After reading every code, law and proclamation, and speaking with each of the aforementioned, The Blind and Shutter Pros will NOT make the claim that window treatments qualify for energy tax credits because it is simply not true. In addition, we caution other window covering professionals to take a long hard look at this publication before advertising that window treatments qualify for a tax credit. Thus, misleading the consumer.

Here is why interior mounted window treatments do not qualify for the tax credit as a matter of law:

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). Window Treatments 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.” The Blind and Shutter Pros has asked two reputable manufacturers to produce their NFRC ratings and have yet to see one.

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.budgetblinds.com/

In closing, window treatments don’t qualify for the tax credits!

Buyer beware of any claims being made by Interior Designers, Retail Window Treatment Specialists or Manufacturers who are advertising energy efficiency that turns into TAX CREDITS. They simply do not.

For any questions regarding this posting, please call The Blind and Shutter Pros 888 410 0115