How to Save up to $1,200 In Federal Energy Tax Credits with Hunter Douglas’ Honeycomb Shades!
What is the Federal Energy Tax Credit?
The Federal Energy Tax Credit is an incentive from the Federal Government to help homeowners get energy-efficient solutions. Tax Credit is provided for eligible products that conform to the laid-out energy-efficiency requirements. Homeowners can get a Tax Credit that’s equivalent to 30% of the purchase price up to $1200. This credit is available on an annual basis on products that are installed before 31st December of the qualifying year.
Benefits of Hunter Douglas Honeycomb Shades
Hunter Douglas’ HoneyComb Shades feature a unique design that creates air pockets, providing unmatched insulation. These are excellent for reducing energy consumption and enhancing your interior’s ambiance. These shades are relatively higher in cost but with the government’s incentive, you can easily get them installed at your place. We will go over in detail how you can get the Tax Credit for your Hunter Douglas HoneyComb shades.
Process of Obtaining a Federal Energy Tax Credit
The process of getting a Federal Energy Tax Credit is fairly simple.
- You have to purchase products that qualify for the credit.
- Get them installed before 31st December of the qualifying year.
- Prepare the documentation
- Submit the Documentation
- Avail of the Tax Credit
Key Considerations Before Applying for the Tax Credit
- The Tax Credit is not in cash form like rebates. The amount will be deducted from your taxes when you file your tax returns.
- The credit is only applicable if the products are installed at a “Permanent Residency”. Products that are installed in a rented place or a second home won’t be considered eligible.
- This credit only covers the product’s cost and not the installation or other service charges.
Documentation Required for Application
You will require the following documents to apply for the Federal Energy Tax Credit:
- An Invoice from Hunter Douglas.
- Receipt, as proof of payment.
- 1 copy of the Manufacturer’s Certification Statement. You can download it from here.
- A copy of the relevant pages from the “Qualifying Product Document” to show the eligible products you have purchased. You can download the document from here.
- Applicable IRS Form (It’s usually Form 5695 but you should check with your tax consultant before applying).
Once you have all the documents, you can submit them along with your tax returns.
Eligible Products for the Federal Energy Tax Credit
When it comes to eligible products, there are 3 categories. Products that qualify, products that don’t, and products that you will have to check.
Products That Qualify
All Hunter Douglas Duette® and Applause® Honeycomb products that come with PowerView® Automation are eligible for the credit.
Products That Do Not Qualify
Any Hunter Douglas products that come with or are purchased with the following design options and systems are not eligible for the credit.
- Duolite®
- Vertiglide™
- Skylift™
- Simplicity™
- TrackGlide™ (Alustra Duette & Duette Only)
- LightLock® (Alustra Duette & Duette Only)
- EasyView® Arch (Alustra Duette & Duette Only)
- Two-on-One Headrail
- End Mount
- Outside Mount
- Specialty; including Sidelights, Shapes, Cut-outs,
- Magnetic Hold Down Brackets
Products That Require Checking
Some non-motorized Hunter Douglas Honeycomb products are eligible for the Tax Credit if purchased with the right fabric, dimensions, and other specifications.
You will have to cross-check your product specs with the required specs. We have a complete guide with a reference chart to help you determine if your product qualifies for the credit.
You can download the reference chart and guide from here.
Maximum Tax Credit Amount for a Year
The credit amount equals 30% of the purchase price, but it is capped at $1,200 per year. For example, if you buy eligible products worth $6000, then as per the 30% rule, you should get a tax credit of (30% of $6000), which is $1800. But due to the cap, you will only get $1200 in a year. However, you can get another tax credit for the next qualifying year.
Eligibility Time Frame for the Federal Energy Tax Credit
Installation Within the Same Year
You can claim the credit if you get the products installed within the same year you purchased them.
Delayed Installation
You can still claim a credit if you purchase products and have them installed in the subsequent year. However, in this case, you will be getting the tax credit for the subsequent year while the eligibility of the products will be determined using the previous year’s “Qualifying Product Document”.
For example, if you buy products in 2024, and get them installed in 2025, you will only be getting the Tax Credit for the year 2025. However, whether your products qualify for the credit, will be determined based on the “Qualifying Product Document” published in 2024.
It’s always better to consult your tax advisor before applying for the credits.
Conclusion
Hunter Douglas Honeycomb Shades are a perfect blend of elegance, style, and energy efficiency. These will provide a calm, serene environment while lowering your energy spending. The Federal Energy Tax Credit is a golden opportunity for homeowners who want to upgrade to superior shading solutions. Buying the right product is the first step toward claiming the Tax Credit and you can easily navigate yourself through the process, using the information provided above. We highly recommend having a tax advisor by your side during the submission of the documents. It will save you from any mistakes and ensure you get the credit on the first attempt.
