Tax Saving: Home Improvements to Save Energy

This is a discussion on Tax Saving: Home Improvements to Save Energy within the Off Topic & Humor Discussion forums, part of the The Back Porch category; Here's a section on saving energy and taxes by insulating your home, etc. Kleinrock's Analysis and Explanation Tax Credits 59. Other Credits 59.9. Credit for ...

Results 1 to 1 of 1

Thread: Tax Saving: Home Improvements to Save Energy

  1. #1
    Moderator
    Array Rock and Glock's Avatar
    Join Date
    Nov 2005
    Location
    Colorado at 25,650'
    Posts
    12,149

    Post Tax Saving: Home Improvements to Save Energy

    Here's a section on saving energy and taxes by insulating your home, etc.


    Kleinrock's Analysis and Explanation
    Tax Credits
    59. Other Credits
    59.9. Credit for Qualified Energy Efficiency Improvements and Residential Energy Property Expenditures


    --------------------------------------------------------------------------------


    A taxpayer is allowed a limited non-refundable credit for the cost of qualified energy efficiency improvements made to an existing home and expenditures for residential energy property. Code Section 25C, added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333. The credit applies to property placed in service after 2005 and before 2008. The amount of the credit that a taxpayer can claim in a taxable year is the sum of (1) 10 percent of the amount paid or incurred by the taxpayer for qualified improvements installed during the year, and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the year. For purposes of the credit, the amount of residential property expenditures is limited to:

    (1) $50 for any advanced main air circulating fan;

    (2) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and

    (3) $300 for any item of energy efficient building property. Code Section 25C(a) and (b), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

    The credit may not exceed $500 in total across all taxable years, and no more than $200 of the credit may be attributable to expenditures on windows. Code Section 25C(b), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

    Any expenditure otherwise qualifying for the credit is not treated as failing to qualify merely because the expenditure was made with respect to two or more dwelling units. However, the amount of the credit is computed separately with respect to the amount of the expenditure made for each dwelling unit. Code Section 25C(e), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.


    (a)Qualified Energy Efficiency Improvements and Residential Energy Property Expenditures

    A qualified energy efficiency improvement is any energy efficient building envelope component that:

    (1) meets or exceeds the criteria for such a component established by the 2000 International Energy Conservation Code as supplemented and as in effect on August 8, 2005 (or, in the case of metal roofs with appropriate pigmented coatings, meets Energy Star program requirements);

    (2) is installed in or on a dwelling (including a manufactured home) located in the United States that is owned and used by a taxpayer as the taxpayer's principal residence;

    (3) the original use of which commences with the taxpayer; and

    (4) reasonably can be expected to remain in use for at least five years. Code Section 25C(c)(1), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

    Building envelope components are:

    (1) insulation materials or systems which are specifically and primarily designed to reduce the heat loss or gain for a dwelling;

    (2) exterior windows (including skylights) and doors; and

    (3) metal roofs with appropriate pigmented coatings that are specifically and primarily designed to reduce the heat loss or gain for a dwelling. Code Section 25C(c)(2), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

    Residential energy property expenditures are expenditures by a taxpayer for qualified energy property that is installed on or in connection with a dwelling unit located in the United States that is owned and used by a taxpayer as the taxpayer’s principal residence and was originally placed in service by the taxpayer. Code Section 25C(d)(1), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333. There are three types of qualified energy property:

    (1) energy-efficient building property;

    (2) qualified natural gas, propane, or oil furnace or hot water boilers; and

    (3) advanced main air circulating fans. Code Section 25C(d)(2), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

    To be qualified energy property, the property must meet the performance and quality standards provided by the IRS that are in effect at the time of the acquisition of the property, or at the time of the completion of the construction, reconstruction, or erection of the property, as the case may be. The performance standards for the different types of property are found in Code Section 25C(d), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.


    (b)Basis Reduction for Credit

    If a taxpayer takes a credit for any expenditure with respect to any property, the increase in the basis of the property that would (but for this provision) result from the expenditure is reduced by the amount of the credit. Code Section 25C(f), added by Pub. L. 109-58, Energy Policy Act of 2005, Section 1333.

  2. Remove Ads

Links

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Similar Threads

  1. Law Enforcement Officers Safety Act Improvements Act of 2009
    By gmark340 in forum The Second Amendment & Gun Legislation Discussion
    Replies: 26
    Last Post: October 6th, 2009, 02:49 PM
  2. S&W M&P 40 - Trigger Improvements?
    By Walter Sobchak in forum Defensive Carry Guns
    Replies: 12
    Last Post: August 4th, 2009, 06:37 AM
  3. Home built "Energy test"
    By 4my son in forum Defensive Ammunition & Ballistics
    Replies: 2
    Last Post: December 11th, 2006, 10:54 AM
  4. Rifle Shooting Improvements Needed
    By Tros in forum Defensive Rifles & Shotgun Discussion
    Replies: 3
    Last Post: July 2nd, 2006, 03:03 PM
  5. Summary of Energy Bill: Saving Energy and Taxes: FINAL INSTALLMENT!
    By Rock and Glock in forum Off Topic & Humor Discussion
    Replies: 0
    Last Post: April 18th, 2006, 04:19 PM