To qualify for the Non-Business Energy Property Credit, the energy efficiency improvements and property expenditures must be made to the taxpayers’ principal residence, which must be located in the U.S. for 2009 and 2010. 

The credit equals 30% of the amount paid or incurred for:

Qualified Energy Efficiency Improvements – consist of insulation materials or systems primarily designed to reduce heat loss/gain; exterior windows; exterior doors; and certain metal or asphalt roofs installed on a dwelling unit with pigmented coatings or cooling granules to reduce heat gain. 

Residential Energy Property Expenditures – to qualify, these expenses must meet specific standards set forth in IRC code.  Some examples of qualified expenditures are; 1, electric heat pump water heaters, electric heat pumps; central air conditioner; natural gas, propane or oil water heaters; or burning biomass fuel stoves that meet specific energy efficiency standards; (2) qualified natural gas, propane, or oil furnaces; or qualified natural gas, propane, or oil hot waters boilers; and (3) advanced main air circulating fans. 

There is a $1,500 cap on aggregate credits claimed in 2009 and 2010 for all types of eligible expenditures (i.e., the $1,500 cap applies to the aggregate amount of credits claimed in both years combined).

Sources:

Internal Revenue Service, IRS.gov

RIA Checkpoint, Tax Action Memo, TAM-1349

For more information, please contact Tim Lieb at 215-564-1900.

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