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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2319
Experience:  IRS licensed Enrolled Agent and tax instructor
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A couple insulates their door, window & threshold & pays 100

Customer Question

A couple insulates their door, window & threshold & pays 100 for the insulation & 300 for the labor for a total of 400. Does the 400 qualify for the residential energy credit?
Submitted: 8 months ago.
Category: Tax
Expert:  emc011075 replied 8 months ago.
Hi. My name is ***** ***** I will be happy to help you. It is not going to be a huge credit and there's lifetime $500 limits but yes, the insulation for windows and doors qualify.From IRS publication: Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2015 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the component meets certain energy standards.Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.Exterior windows and skylights.Exterior doors.Any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home. For purposes of figuring the credit, do not include amounts paid for the onsite preparation, assembly, or original installation of the building envelope component.
Expert:  emc011075 replied 8 months ago.
Here are the limits: Nonbusiness Energy Property Credit(Part II)You may be able to take a credit equal to the sum of:10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2015, andAny residential energy property costs paid or incurred in 2015.However, this credit is limited as follows.A total combined credit limit of $500 for all tax years after 2005.A combined credit limit of $200 for windows for all tax years after 2005.A credit limit for residential energy property costs for 2015 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.
Expert:  emc011075 replied 8 months ago.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today? And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.