Energy Efficient Home Improvement Credit

§ 25C. Energy efficient home improvement credit(a) Allowance of creditIn the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of—(1) the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year, and (3) the amount paid or incurred by the taxpayer during the taxable year for home energy audits. (b) Limitations(1) In generalThe credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200. (2) Energy propertyThe credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600. (3) WindowsThe credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600. (4) DoorsThe credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed—(A) $250 in the case of any exterior door, and (B) $500 in the aggregate with respect to all exterior doors. (5) Heat pump and heat pump water heaters; biomass stoves and boilersNotwithstanding paragraphs (1) and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses (i) and (ii) of subsection (d)(2)(A) and in subsection (d)(2)(B). (6) Home energy audits(A) Dollar limitationThe amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150. (B) Substantiation requirementNo credit shall be allowed under this section by reason of subsection (a)(3) unless the taxpayer includes with the taxpayer’s return of tax such information or documentation as the Secretary may require. (c) Qualified energy efficiency improvementsFor purposes of this section—(1) In generalThe term “qualified energy efficiency improvements” means any energy efficient building envelope component, if—(A) such component is installed in or on 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), (B) the original use of such component commences with the taxpayer, and (C) such component reasonably can be expected to remain in use for at least 5 years.