Residential Energy Efficient Property Credit

If you have made energy saving alterations to your home during 2017, you are able to claim costs of the alterations on a Form 5695.


Or the costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property and fuel cell property.

‘Qualified solar electric property’ is regarded as cost for property that use solar energy to generate electricity for use in your home located in the US.

 You may be able to take a credit equal to the sum of:

1.       10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2017, and

2.       Any residential energy property costs paid or incurred in 2017.

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 2017 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.


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