Energy Credit

[Kram BergGold]

In 2008 my clients added solar heating to their home. So they will get the maximum $2,000 credit. In 2009 they will divorce and the wife will get the house. If she does any work eligible for the energy credit, can she get a credit or is she maxed out due to the joint 2008 credit? I would assume that she gets nothing but don't know for sure.

[JG EA]

I have not read any thing about this yet. I just looked and found this "Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters). This credit is completely separate from the $500 home improvement credit."

Found on energystar

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

It sounds up to date because of the 2016, but the part about the home improvement credit is probably still referring to 2007,

But the removal of the cap is interesting.

[taxea]

Energy Credit

I thought all energy credits were not in effect for 2008 and back in 2009. Homeowner credit remains throughout...gotta re-research this I guess.

I was not aware of a one-time limit. I thought the limit was per separate item.taxea

[Bees Knees]

I thought all energy credits were not in effect for 2008 and back in 2009. Homeowner credit remains throughout...gotta re-research this I guess.

It is the Nonbusiness Energy Property Credit that is not in effect for 2008. The Residential Energy Efficient Property Credit is in effect for 2008. So is the Energy Efficient Home Credit and the Energy credit. The Qualified Electric Vehicle Credit under IRC §30 is never comming back. But the good news is there are some new credits such as the Electric Vehicle Credit Under IRC §30D to take the place of the ones that have expired.

[DonPriebe]

It is the Nonbusiness Energy Property Credit that is not in effect for 2008.

Just to be clear, the credit that is NOT in effect for 2008 is the one for insulation, windows, doors, efficient furnaces and water heaters, etc. The one that used to be on the front page of the 5695.

[Jesse]

In 2008 my clients added solar heating to their home. So they will get the maximum $2,000 credit. In 2009 they will divorce and the wife will get the house. If she does any work eligible for the energy credit, can she get a credit or is she maxed out due to the joint 2008 credit? I would assume that she gets nothing but don't know for sure.

Someone will correct me if I'm wrong, but I think this is an annual $2,000 maximum, unlike the $500 lifetime for Nonbusiness Energy Property Credit, which was pointed out expired 12/31/2007.

According to a seminar that I recently attended - The Nonbusiness Energy Property Credit is reinstated for property placed in service after 12/31/08 and before 01/01/10 with some additions. It will now include "an asphalt roof with appropriate cooling granules as a qualified building envelope improvement" and "a natural gas, propane, or oil water heater with a thermal efficiency of at least 90%".