Question

Todd and Rachel made some energy improvements purchases for their home. They paid $2,250 for a new window and $1,500 for a new qualified natural gas furnace. They have never claimed an energy credit on their tax return. How much is their nonbusiness energy property credit?

Answer 1

Answer to question

Todd and Rachel  in their  tax return can claim Credit as follows

For new window 10% of $2250 i.e. $225 but maximum $200

So, nonbusiness energy property credit is $200

For, new qualified natural gas furnace can claim upto $150

So, nonbusiness energy property credit is $150.

Note

1. If you made certain energy-saving or energy-efficient home improvements in 2019, you could get a tax credit for up to 10% of the purchase price of qualified products, up to a maximum total $500 amount for all Tax Years after 2005 (for windows, it's a $200 total maximum amount), installed during 2019.

2. $150 for gas, propane, or oil furnaces