26 U.S.C. § 25C: Energy efficient home improvement credit

the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year, and the amount paid or incurred by the taxpayer during the taxable year for home energy audits. The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200. The 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. The 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. $250 in the case of any exterior door, and $500 in the aggregate with respect to all exterior doors. Notwithstanding 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). The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150. No 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. 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), the original use of such component commences with the taxpayer, and such component reasonably can be expected to remain in use for at least 5 years. in the case of an exterior window or skylight, Energy Star most efficient certification requirements, in the case of an exterior door, applicable Energy Star requirements, and in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such component is placed in service. any insulation material or system, including air sealing material or system, which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit, exterior windows (including skylights), and exterior doors. The term “dwelling unit” includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations). installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and originally placed in service by the taxpayer. An electric or natural gas heat pump water heater. An electric or natural gas heat pump. A central air conditioner. A natural gas, propane, or oil water heater. A natural gas, propane, or oil furnace or hot water boiler. uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). meets or exceeds 2021 Energy Star efficiency criteria, and is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel. is installed in a manner consistent with the National Electric Code, has a load capacity of not less than 200 amps, any qualified energy efficiency improvements, or any qualified energy property described in subparagraphs (A) through (C) for which a credit is allowed under this section for expenditures with respect to such property, and enables the installation and use of any property described in subclause (I) or (II) of clause (iii). biodiesel and renewable diesel (within the meaning of section 40A), second generation biofuel (within the meaning of section 40), and transportation fuel (as defined in section 45Z(d)(5)). identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary in regulations or other guidance (as prescribed by the Secretary not later than 365 days after the date of the enactment of this subsection). Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) shall apply. Any expenditure otherwise qualifying as an expenditure under this section shall not be treated as failing to so qualify merely because such expenditure was made with respect to two or more dwelling units. In the case of any expenditure described in subparagraph (A), the amount of the credit allowable under subsection (a) shall (subject to paragraph (1)) be computed separately with respect to the amount of the expenditure made for each dwelling unit. For purposes of determining the amount of expenditures made by any individual with respect to any property, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)). For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. such item is produced by a qualified manufacturer, and the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year. For purposes of this section, the term “qualified product identification number” means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3). assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), label such item with such number in such manner as the Secretary may provide, and make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned. For purposes of this subsection, the term “specified property” means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). This section shall not apply with respect to any property placed in service after December 31, 2025 . Except as otherwise provided by this subsection, the amendments made by this section [amending this section and sections 1016 and 6213 of this title] shall apply to property placed in service after December 31, 2022 . The amendments made by subsection (a) [amending this section] shall apply to property placed in service after December 31, 2021 . The amendments made by subsection (g) [amending this section and section 6213 of this title ] shall apply to property placed in service after December 31, 2024 .” The amendment made by subsection (a) [amending this section] shall apply to property placed in service after December 31, 2014 . The amendments made by subsection (b) [amending this section] shall apply to property placed in service after December 31, 2015 .” Except as provided in paragraph (2), the amendment made by this section [amending this section and sections 25D and 48 to 48B of this title] shall apply to periods after December 31, 2008 , under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990 [ Nov. 5, 1990 ]). The amendments made by subparagraphs (A) and (B) of subsection (b)(2) [amending this section and section 25D of this title ] shall apply to taxable years beginning after December 31, 2008 .” Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2008 . The amendments made by paragraphs (1), (2), and (3) of subsection (b) and subsections (c) and (d) shall apply to property placed in service after the date of the enactment of this Act [ Feb. 17, 2009 ].” Except as provided in paragraph (2), the amendments made [by] this section [amending this section] shall apply to expenditures made after December 31, 2008 . The amendments made by subsection (e) [amending this section] shall apply to property placed in service after the date of the enactment of this Act [ Oct. 3, 2008 ].”