Thursday, July 9, 2009


Larry, I recently heard some news of a $1,500 energy credit. I have already used the $500 energy credit on my 2007 taxes. Do I still get the $1,500 credit on my taxes this year, even if I previously used the $500 credit?


Thomas, you are referring to the Non-Business Energy Property Credit. Taxpayers do get the $1,500 credit even if they have used the previous $500 credit. Here's some more information that may help you to understand the credit better.

The Credit is available during the 2009 & 2010 tax year.

The Credit is nonrefundable.

The amount allowable of the credit is a lifetime cap of $1,500. This amount can be reached by taking 30% on the following items:
  • Insulation, exterior windows or skylights, exterior doors, and certain metal or asphalt roofing.

  • Energy –efficient property including electric heat pump water heaters, electric heat pumps, central air conditioners, natural gas, propane, or oil heaters and biomass fuel stoves.

  • Qualified natural gas, propane, or oil furnaces or boilers.

  • Advanced main air circulating fans.

The $1,500 can be claimed in 2009 and 2010 even if they have used the $500 credit in 2006 and 2007.

If only a portion of the $500 credit was used, the remainder can not be carried forward.

The items must meet the criteria of the International Energy Conservation Code.