The Investment Tax Credit (ITC) is a federal tax credit that can be claimed by businesses and individuals who invest in qualifying energy-efficient property. The ITC is currently available for a wide range of energy-efficient building materials, including glass.
To qualify for the ITC, the glass must meet certain performance standards, such as having a low solar heat gain coefficient (SHGC) and a high visible transmittance (VT).
The ITC rate for efficient glass is currently 30% for installations in 2022 and 2023. This means that you can save up to 30% on the cost of efficient glass, as well as the cost of installation.
Benefits of using efficient glass
Efficient glass can offer a number of benefits, including:
- Reduced energy costs for heating and cooling
- Improved indoor comfort levels
- Reduced greenhouse gas emissions
- Increased resale value of the home
How to claim the ITC for efficient glass
To claim the ITC for efficient glass, you must file Form 3468 with your federal income tax return. The credit can be claimed over a period of five years, and any unused credit can be carried forward to future years.
How to qualify for the Investment Tax Credit (ITC) for efficient glass?
To qualify for the Investment Tax Credit (ITC) for efficient glass, the following requirements must be met:
- The glass must be installed in a commercial building or multifamily residential building located in the United States.
- The glass must be placed in service after December 31, 2022.
- The glass must meet the applicable energy efficiency standards set by the Department of Energy (DOE).
- The glass must be a qualified component of a building energy property.
The following types of glass are eligible for the ITC:
- Electrochromic glass
- Thermochromic glass
- Suspended particle devices (SPDs)
- Gasochromic glass
- Photochromic glass
The ITC is a 30% tax credit on the cost of the glass, including installation costs. The credit can be claimed on the taxpayer's federal income tax return.
In addition to the base credit, there are two bonus credits that may be available:
- A 10% bonus credit for projects that meet certain domestic content requirements.
- A 10% bonus credit for projects that are located in a designated energy community.
The total ITC for a project can be as high as 50%.
To claim the ITC, taxpayers must complete Form 3468, Investment Tax Credit. The form must be filed with the taxpayer's federal income tax return.
Examples of efficient glass that qualify for the ITC
Here are some examples of efficient glass that qualify for the ITC:
- Low-e glass
- Low-carbon glass
- Smart glass
- Tinted glass
- Heat-reflective glass
Why Consider the ITC
- Immediate Savings: Reduce the initial cost of investing in energy-efficient technologies.
- Affordability: Makes cutting-edge, energy-efficient technologies more accessible.
- Job Creation: Supports the clean energy sector, fostering job growth.
- Environmental Benefits: Encourages the use of products that reduce greenhouse gas emissions.
Conclusion
The ITC offers an excellent opportunity for homeowners and businesses looking to make their properties more energy-efficient. By selecting the right type of glass, you not only enhance your space's aesthetics and comfort but also open the door to significant tax savings.
If you're considering an upgrade, now might be the perfect time. Dive deep into the world of energy-efficient glass and discover how the Investment Tax Credit can benefit you.
Contact us today to learn more about how you can save money on efficient glass with the ITC.