CREDIT FOR NON-BUSINESS ENERGY PROPERTY §
25C:
ELIGIBILITY REQUIREMENTS FOR THE TAX CREDIT
- For 2006 & 2007 tax years
Energy Tax Credit Details for Siding Insulation
The $500 tax credit for qualified energy efficiency
improvements is allowed when insulation material or system is considered
an “Eligible Building Envelope Component” if it is specifically and
primarily designed to reduce heat loss or gain of a dwelling unit when
installed in or on the dwelling unit.
Under § 25C of the Internal Revenue Code,
manufacturers may follow to certify property as either an Eligible Building
Envelope Component or Qualified Energy Property, under which taxpayers
seeking to claim the § 25C credit may rely on a manufacturer’s certification
(or, in the case of certain windows, an Energy Star label).
Tax Credit Guidelines for § 25C to the Internal Revenue Code. Section 25C:
1.
Ten percent (10%) of the amount paid or incurred by the taxpayer
for
qualified
energy efficiency improvements installed during the taxable year.
2. The maximum amount of the credit allowable
to a taxpayer for all taxable years is $500 ($200 in the case of amounts
paid or incurred for exterior windows (including storm windows and skylights).
3. The purchase must be made during the taxable year for which the credit is claimed.
4. Not allowed for amounts paid for onsite
preparation, assemble, original installation labor, siding or sales
tax.
5. The Energy Policy Act provides that the
credit applies that improvements must be installed
in or on the taxpayer’s principal residence in the
How To Claim Your Tax Credit
After establishing your eligibility to claim
a Tax Credit for Non-Business Energy Property § 25C, please complete
the following to ensure accuracy:
Request an invoice and/or “Tax Credit Worksheet”
demonstrating the cost breakout of the insulation material from your
franchise. This cost must exclude the cost of onsite preparation, assembly,
original installation labor, siding or sales tax.
Download the applicable official Manufacturer's Certificate
PDF following the links below (Adobe Acrobat Reader required).
Retain the invoice and/or “Tax Credit Worksheet”
and our official Manufacturer's Certificate for your IRS records. You
are not required to provide this documentation to the IRS, but
you will be required to present it if audited.
http://www.irs.gov/pub/irs-drop/n-06-26.pdf.
Click
here
for the manufacturer’s certificate from Pactiv
Building Products.
Click
here for the manufacturer’s certificate from
Plymouth Foam.
* Pactiv
Insulation or