What is an IR-Cut Filter?
The human eye can only see light between the blue and red spectrum, but a color camera's image sensor can detect more, including the long-wave infrared radiation and thus "see" infrared light. When used during daylight, the infrared waves distort colors as humans see them. An IR-Cut filter can be used to produce a true color image.
When placed in a day/night camera (where the image turns from color to black and white under low light conditions), the IR-Cut filter can also have an effect on the black and white image. As you can see in the images below, the one with the IR-Cut filter produces a brighter, clearer image.
 |  |
| (Without IR-Cut Filter) | (With IR-Cut Filter) |