Please review the ShutterSmart Manufacturer’s Certification Statement and Qualifying Product Document available at www.shuttersmart.com/tax-credit for product details and limitations, and also consult with your tax advisor on the particular Federal Tax Credit opportunity.
Below are answers to frequently asked questions.
Q: What is the Federal Tax Credit for Energy Efficient Home Improvement?
A: To help provide incentives for homeowners to make energy-efficiency home improvements, the federal government offers tax credits as a way to offset the costs of these upgrades. As per the Inflation Reduction Act of 2022, the Federal Tax Credit is available on an annual basis from January 1, 2023–December 31, 2023.
• Qualifying product(s) must be installed in an existing residential principal residence (no secondary homes or rental properties) by December 31 of the qualifying tax year.
Q: How does the Federal Tax Credit Work?
A: This is not cash in your hand (like a rebate, which gives you cash back after you’ve made a purchase), but a tax credit— which is an amount of money that you subtract directly from the taxes that you owe.
Q: Which ShutterSmart products currently qualify for the Federal Tax Credit?
A: The ShutterSmart EnergyGuard polyclad wood shutter currently qualifies for the Federal Tax Credit. For details and restrictions, refer to the Manufacturer’s Certification Statement and related Qualifying Product Document available at www.shuttersmart.com/tax- credit.
• Products must be installed by December 31 of the qualifying tax year.
• Qualifying products meet applicable energy performance standards as identified in the International Energy Conservation Code (IECC) for U-factor and Solar Heat Gain Coefficient for all climate zones.
Q: What is a Manufacturer’s Certification Statement?
A: A Manufacturer’s Certification Statement is a signed statement from ShutterSmart (which, along with the Qualifying Product Document) certifies whether the specific product purchased by you qualifies for the tax credit, subject to specified product details and restrictions.
• You can find the ShutterSmart Manufacturer’s Certification Statement and related Qualifying Product Document at www.shuttersmart.com/tax- credit
Q: How much do you receive for the Federal Tax Credit? A: Qualifying products are eligible for a tax credit equal to
30% of the “purchase price” of the products, up to a maximum annual amount of $1,200.
• Applicable “purchase price” is the amount paid by you for the product(s), including sales tax, and does not cover the costs for measuring or installing of qualifying products. If sales tax is charged on both the shutter and the installation labor, only the portion of the sales tax applicable to the shutter, and not any sales tax applicable to the labor, is included in the “purchase price” that you apply to the 30%.
Q: What is the maximum Federal Tax Credit amount I can get each tax year?
A: Even if you purchase multiple qualifying products in a year, the maximum amount of the Federal Tax Credit during any taxable year is $1,200. For example, if you spend up to $5,000 during the year on a single qualifying product or multiple qualifying products, you are only eligible to receive 30% up to a $1,200 cap (30% of $5,000 = $1,500 and you receive $1,200 under the tax credit). Consult with your tax advisor to determine your eligibility for this tax credit.
Q: What is the time frame during which the Federal Tax Credit can be earned on ShutterSmart EnergyGuard?
A: Starting January 1, 2023–December 31, 2023, the
$1,200 annual limit applies, meaning you can claim the maximum credit for each taxable year, for purchases in those years, through year-end 2023. The Manufacturer’s Certification Statement must apply to those products and corresponding receipt purchase dates. Consult your tax advisor for further details.
Q: What do I need to submit for the Federal Tax Credit? A: You should retain your itemized ShutterSmart invoice,
proof of payment (receipt) and a copy of the Manufacturer’s Certification Statement. To claim the tax credit, you will need to complete the applicable IRS forms and submit them with your tax returns. The credit is usually taken on Form 5695. Please note that the IRS may change or update this tax form, so you should consult your tax advisor as to the correct form to file or visit the IRS website.
Federal Tax Credit
Energy Efficient Home Improvement Credit
Frequently Asked Questions (FAQs)