Credit for homeowners

[Acownt4it]

Just double checking that I understand the "Credit for homeowner energy efficiency improvements".
This is only for purchases and improvements made in 2006 and 2007. If the homeowner insulated their attic in 2005, no credit for this.
Correct?

[djack1040]

Energy Credits

Correct, effective for 2006-07 tax years.

[Bird Legs]

Home Energy Credit

This credit is based only on the cost of the equipment and does not include the
labor to install. This is the way I understand it.

[Bill Tubbs]

cost of labor

This credit is based only on the cost of the equipment and does not include the
labor to install. This is the way I understand it.

Hmm.. I understood it to be based on the cost of the equipment PLUS the cost of the labor. Don't have any quote for that handy though.

After all, what's the difference between selling a window with installation included, or breaking out the dollar amounts?

Bill

[Acownt4it]

labor

According to the TMI Book pg 1-17, "Residential energy property expenses include the cost of installation."
Qualified energy property means energy-efficient building property, qualified natural gas, propane, oil furnace or hot water boiler, or an advanced main air circulating fan.
So my take on it is that installation costs are not incuded with doors or windows.

[Bees Knees]

Cost of installation

Section 25C(d) says: "Residential Energy Property Expenditures- For purposes of this section--(1) IN GENERAL- The term `residential energy property expenditures' means expenditures made by the taxpayer for qualified energy property which is--(A) installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121), and (B) originally placed in service by the taxpayer. Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property."