Residential Energy Credits

What are residential energy credits?

You may be eligible for tow new credits below for making energy saving improvements to your home in the tax year:

1. the nonbusiness energy property credit and
2. the  residential energy efficient property credit

What are the qualifying costs for residential energy tax credits?

For residential energy credit purposes, costs are treated as being paid when the original installation of the item is completed, or in the case of costs connected with the construction or reconstruction of a building when your original use of the constructed or reconstructed building begins.

If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that are allocable to the nonbusiness use can be used to determine the credit.

What is a home for residential energy tax credit purposes?

A home includes a:

• house,
• houseboat,
• mobile home,
• cooperative apartment,
• condominium, and
• certain manufactured homes.

You must reduce the basis of your home by the amount of credit allowed.

If you are a member of a qualified condominium management association for a condominium which you own or a tenant stock holder in a cooperative housing cooperation, you are treated as having paid your proportionate share of any costs of such association or corporation. Credits must be allocated based on the ratio of individual qualified costs to total qualified costs in the case of joint occupancy.

Nonbusiness Energy Property Credit

Qualified Energy Efficiency Improvements

Residential Energy Property Costs

Residential Energy Efficient Property Credit