The credit has a lifetime limit of $500, of which only $200 can
be for windows. Also, only 10% of eligible energy-saving home
improvements installed during the tax year qualify for the credit,
but are still subject to other stated maximums. There are also
other limits for certain devices, listed below. Finally, the $500
credit limit is reduced by amounts you received for the credit in
A credit is also available for investments in alternative energy
for your home. The Residential Energy-Efficient Property Credit
also equals 30% of qualifying improvement costs, with no dollar
limit except for fuel cells. Installation is usually included.
Property and installation costs must be for use in your home
located in the United States. Except for fuel cells, the home does
not have to be your main home.
To claim the credit, complete Form 5695 and attach the form to
your Form 1040 or Form 1040A.
For more information, see Energy Incentives in the Recovery