Solar Film Tax Break for Homeowners Could End Soon

December 7th, 2016 by Editor

The incoming president has vowed to overhaul the U.S. tax code in 2017, and the GOP-led Congress is ready to make that happen in the coming year. That means many popular tax code provisions for homeowners that expire at the end of December, such as deductions for buying energy efficient solar control window film, may not be extended.capitol

If Congress passes a continuing resolution to keep the government running after December 9, the programs could be extended. However, a senior GOP leader told Environment & Energy News that there’s a good chance they won’t be renewed.

“There’s always a push for tax extenders, but I just think they want to start anew and see what they can do the first of the year,” Senate Finance Chairman Orrin Hatch (R-Utah) told the publication. Additionally, House Majority Leader Kevin McCarthy (R-Calif.) told Environment & Energy News that he didn’t expect any action on these items during the current lame-duck session.

“Each year, this ‘tax-extender bill’ gets pushed to the end of the year, and at the last minute Congress has renewed it, albeit with more restrictiveness each time,” says Darrell Smith, executive director of the International Window Film Association (IWFA). “This year it may be tougher to get it renewed as many forces against energy restrictions and environmental issues are emboldened by the recent election results.” He also adds that there have been several articles in the press regarding energy legislation as “dead” for the time being, although there are several bills of that nature already in the “Congressional pipelines.”

Until December 31, 2016, homeowners can receive a tax credit of 10 percent for having solar control window film installed at their primary residence, but this deduction is limited to a $500 lifetime cap.

“What will result is just a guess at this point,” says Smith. “I will be pleasantly surprised to see the extender bill get renewed this year.”

Other popular programs set to expire at the end of December include the Investment Tax Credit (ITC) for advanced energy technologies, mortgage debt forgiveness for financially troubled owners, and mortgage insurance write-offs for first-time homebuyers with moderate incomes.

This article is from Focus on Film, the weekly e-newsletter that covers the latest news regarding window film and related products, including paint protection film. Click HERE to sign up—there is no charge. Interested in a deeper dive? Free subscriptions to Window Film magazine in print or digital format are available. Subscribe at no charge HERE.

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