@bisenhower wrote:
I was told that the stimulus package that was recently approved extended the energy home improvement tax credit through 2021. Can this be verified?
The IRS Form 5695 instructions have not yet been finalized for tax year 2020. They should be available on 01/21/2021
IRS Form 5695, Residential Energy Credits for 2020 (Draft) -
Nonbusiness Energy Property Credit
(Part II)
You may be able to take a credit equal to the sum of:
1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2020, and
2. Any residential energy property costs paid or incurred in 2020.
However, this credit is limited as follows.
• A total combined credit limit of $500 for all tax years after 2005.
• A combined credit limit of $200 for windows for all tax years after 2005.
• A credit limit for residential energy property costs for 2020 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.
