Energy Prop Credit - when to claim

[TAXNJ]

For the Nonbusiness Energy Property Credit - what year can the credit be claimed:

1- the year purchased? OR 2 - the year installed (placed in service) ? (example, if purchased in 2006 the items but installed in 2007)

The TaxBook example on page 11-11 top of 2nd column uses two dates.

Thanks in advance

[Bees Knees]

The example is illustrating that since there is a lifetime limit of $500, and $350 was used in 2006, the 2007 credit cannot be anymore than $150. It also illustrates that since only $200 of the $500 lifetime limit can be used for windows, and $200 of the 2006 credit was for windows, then none of the credit for 2007 can be for windows.

As to the year you claim the credit, page 11-11 says it is the year placed in service.

[TAXNJ]

Thank You

Thanks for the quick response