Description and Eligibility

Individuals who make purchases for qualified energy-efficient improvements or an energy-efficient property for their main home may be allowed nonrefundable tax credits. Taxpayers who purchase certain qualified energy-efficient improvements for their main home may be allowed a nonrefundable tax credit. There are two types of residential energy credits:

• Nonbusiness energy property credit
• Residential energy-efficient property credit

As you review the Life Events section of the intake and interview sheet, note if the taxpayers indicated that they purchased energy-efficient items. Taxpayers must own their home to qualify for these credits. In your initial interview, you should have discovered if the taxpayer owned a home or not. See the Volunteer Resource Guide (Tab G) for key points on Energy Credits.

Before completing Form 5695, calculate any credit for the elderly or the disabled that the taxpayer may be eligible to claim.