ENERGY CREDIT AGAIN

[mcb39]

Is new siding considered to be enveloping the home for purposes of the energy credit.  How  do we interpret "enveloping the home"?  Is that insulation only?

[Lee B]

https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers

[mcb39]

1 hour ago, Lee B said:

https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers

Thanks, but that data is dated December 21, 2022

[Lee B]

20 minutes ago, mcb39 said:

Thanks, but that data is dated December 21, 2022

That's the current link provided by the IRS, since the most recent changes went into effect January 1, 2023.

You can always do you own searches

[TexTaxToo]

From the code:

Quote

The term “building envelope component” means—

(A)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,

(B)exterior windows (including skylights), and

(C)exterior doors.

Windows and doors must meet specific energy star requirements, so generally only the more expensive ones qualify.

"Insulation" has the least requirements (must meet IEEC standards) and manufacturers are claiming that things like window shades qualify, but from the instructions for Form 5695:

Quote

A component isn't specifically and primarily designed to reduce the heat loss or gain of your home if it provides
structural support or a finished surface (such as drywall or siding) or its principal purpose is to serve any function unrelated to the reduction of heat loss or gain.

 So I think you are out of luck.

[mcb39]

18 hours ago, Lee B said:

That's the current link provided by the IRS, since the most recent changes went into effect January 1, 2023.

You can always do you own searches

I have researched every available source that I could find.  I did NOT take the deduction.  Thanks to everyone who contributed to this discussion.