Renters can take the credit. The instructions are misleading.....section 25D(f) says the increase in the basis which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed or in other words there is no basis increase allowed as the credit offsets the increase.....there is no requirement to reduce the basis except to offset the credit itself.
The credit is for a dwelling unit as defined in section 280A(f)(1) and that is a house, apartment, condominium, mobile home, boat, or similar property, and all structures or other property appurtenant to such dwelling unit'......it includes an apartment......renters can take the credit.
