Residential energy credits

[Basilis]

Hello,

In 2021, I purchased windows that qualify for the residential energy credit. I paid 30% of the total cost 2021. The windows will be installed until April 2022 and I will also pay the remainder 70% of the cost in 2022. My question is, do I claim the credit in the 2021 taxes or in the 2022 taxes? or can I claim 30% of the cost in 2021 and the reminder 70% in 2022?

Thank you for your help

[DavidD66]

According to the IRS:

In 2018, 2019,  2020, and 2021, an individual may claim a credit for (1) 10% of the cost of qualified energy efficiency improvements and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the taxable year (subject to the overall credit limit of $500).

You can only claim a credit based on what you paid in 2021.  For qualifying windows, it's up to 10% of the costs you incurred.  The energy credits have not been extended beyond 2021.

[Basilis]

Thank you very much!