Nonbusiness Energy Property Credit (Section 25C) at a Glance
A credit of 10 percent of the cost of qualified energy-efficient improvements. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. The cost of installing these items is not included in the credit calculation. Additionally, a credit is available, including the costs of installation, for certain high-efficiency heating and air-conditioning systems, as well as high-efficiency water heaters and stoves that burn biomass fuel. There is a lifetime limitation of $500, of which only $200 may be used for windows. Qualifying improvements must have been placed in service in the taxpayer's principal residence located in the United States through Dec. 31, 2016.
Publication 17, Your Federal Income Tax - Chapter 38, Other Credits - Under Nonrefundable Credit, see Residential Energy Credit for essential guidance
Instructions for Form 5695, Residential Energy Credits - See Nonbusiness Energy Property Credit for detailed guidance