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Nonbusiness Energy Property Credit
This provision allows individual taxpayers a credit for expenses incurred to improve the energy efficiency of their residences. The maximum aggregate credit over a taxpayer's lifetime is $500. The credit is equal to the sum of: 100% of the cost of residential energy property, plus 10% of the cost of qualified energy efficiency improvements to existing homes.
1. Residential energy property (subject to 100% credit) includes energy-efficient building property, qualified electric heat pumps, and qualified natural gas, propane or oil furnace hot water boilers, etc.
2. Qualified energy-efficiency improvements to existing homes (subject to 10% credit) include exterior doors, exterior windows and insulation materials, etc.
Other provisions of this credit include:
3. Vacation homes and rental dwellings do not qualify for the credit.
4. This credit is allowed only for expenditures incurred after December 31, 2005 and before January 1, 2008.
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