You would enter the amount you paid for the project. Taking a loan out to pay for it doesn't affect the credit.
These are entered in the Deductions & Credits section:
- With your return open, search for energy improvements in
the program search box. (Don't search for "energy credit," as
this will take you to the wrong place in the program.)
- Click Jump
to energy improvements in the search results.
- At the bottom of the Energy-Saving Home Improvements screen,
answer Yes and
click Continue.
- Follow the on-screen instructions.
If that doesn't work: Go directly to
the Federal Taxes tab, then Deductions & Credits, then Your
Home, then scroll to Home Energy Credits.
Note: The Residential Energy Efficient Property Credit is
what is called a "non-refundable" credit which means it
will only reduce your tax liability to zero. Any remainder can be
carried forward to the next year.
