There seems to be a difference of opinion regarding whether newly constructed homes qualify for the credits claimed on Form 5695, Residential Energy Credits.
Taxpayers who build a new residence in 2006 that included energy-efficient windows, doors, furnace, air conditioning, and water heater have all of the required manufacturer’s certifications and Energy Star ratings. They assume that the residential energy credit can be calculated on their tax return. Let’s see if they qualify for the credit.
While a manufacturer’s certification states that a particular product or component qualifies for the energy tax credit, the product must be installed as an improvement to an existing residence. For example, the taxpayer has to take out the old windows and install new energy-efficient windows, or tak out the old storm doors and install new energy-efficient storm doors. In other words, at the time of installation the house must already be owned and used as the taxpayer’s principal residence.
Taxpayers who have made qualified engery-efficient improvements to their existing personal residence must keep a copy of the manufacturer’s certification statement in their records and should not attach it to their tax return.
Taxpayers who build a new residence in 2006 that included energy-efficient windows, doors, furnace, air conditioning, and water heater have all of the required manufacturer’s certifications and Energy Star ratings. They assume that the residential energy credit can be calculated on their tax return. Let’s see if they qualify for the credit.
While a manufacturer’s certification states that a particular product or component qualifies for the energy tax credit, the product must be installed as an improvement to an existing residence. For example, the taxpayer has to take out the old windows and install new energy-efficient windows, or tak out the old storm doors and install new energy-efficient storm doors. In other words, at the time of installation the house must already be owned and used as the taxpayer’s principal residence.
Taxpayers who have made qualified engery-efficient improvements to their existing personal residence must keep a copy of the manufacturer’s certification statement in their records and should not attach it to their tax return.
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