Energy efficient tax credit?

[burniegoeasily]

Just curious how one qualifies? I was going to put in new windows and more insulation in my attic. My neighbor put in new energy efficient window in his house last Fall. I asked him yesterday if he received a tax credit for doing so. He told me no. We didn’t have time to discuss this much since I was on my way out of town. He said something to the effect that he did not spend enough. He has a 3500 square ft house with two or three windows per room.

I’m curious, was there a formula combining income with money spent on energy efficient updates, or is it a target amount spent? Because I find it hard to believe my neighbor did not qualify. He is the school janitor and he replaced a lot of windows. It appears that this credit was nothing but a shell game.

[ipscshooter]

He should have been able to take it, if the windows met the energy efficiency guidelines. The tax credit is, I believe, 30% of what they cost. Use Form 5695.

[burniegoeasily]

His did. I need to talk to him about it more. I just found it odd that he did not meet the requirements.

[bergall]

isn't the credit capped at $1500 ?

[burniegoeasily]

I am not sure. That is why I asked. It just seemed awaful fishy.

[emptyquiver2]

I had a new furnace put in a year ago. The unit was 1500, ended up getting 300 back when I mailed the slip into the government. Same with the windows on my income property. Was considering doing the same with the hotwater heaters.

[ipscshooter]

Yes, it's capped at $1500, and I think the only reason you wouldn't get it is if you don't owe at least $1500 in taxes, after subtracting all other credits.

[burniegoeasily]

Originally Posted by ipscshooter

Yes, it's capped at $1500, and I think the only reason you wouldn't get it is if you don't owe at least $1500 in taxes, after subtracting all other credits.

I bet that this is the case with my neighbor.