We signed a contract to have our windows replaced with energy star certified windows in September 2021 and paid both a initial down and a second payment in November 2021 when the contractor came out to measure the windows. Due to sourcing delays our windows were not actually installed until 2022. The payments we made in 2021 were significantly more than the tax credit. Does the signing the contract and making payments qualify us for the tax credit or do we need to see if the credit was extended to 2022?
In the instructions for 5695, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. Making payments and the signing of the contract in 2021 will not qualify you for this credit.
For 2022, the only energy credit that has been extended is a Renewable energy tax credit for energy improvements such as solar, wind, or geothermal.
In the instructions for 5695, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. Making payments and the signing of the contract in 2021 will not qualify you for this credit.
For 2022, the only energy credit that has been extended is a Renewable energy tax credit for energy improvements such as solar, wind, or geothermal.