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Energy Tax Credit--Residential Property

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Energy Tax Credit--Residential Property
Taxpayers may be able to take a credit equal to the sum of: (1) 10% of the amount paid in 2006 for qualified energy efficiency improvements (for example, insulation, exterior windows, and exterior doors) installed during 2006, and (2) Any residential energy property costs (for example, qualified furnaces, water heaters, and heat pumps) paid in 2006. Several dollar limits apply to the credit. A credit also may be claimed for 30% of the cost of qualified photovoltaic property, solar water heating property, and fuel cell property. Dollar limits also apply to this credit. See Form 5695 for more information.


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