Energy Credit for Windows

[M7047]

Client had windows installed in 2022, but they were financed for free and nothing is paid on them yet. Does the credit belong in 2022 when they were installed or can they wait and take the larger credit in 2023 when they actually pay for them?

[Lee B]

According to the Tax Book with respect to 2022 Residential Energy Credits,

"Costs are treated as being paid when the original installation of the item is completed."