SECTION 4. QUESTIONS AND

ANSWERS RELATING TO § 25C (NONBUSINESS ENERGY PROPERTY)

Q–17: If a taxpayer claimed a § 25C credit in the amount of $1,000 in 2009, is the taxpayer eligible to claim additional credits for qualifying § 25C property expenditures made in 2013?

A–17: No. Prior law allowed taxpayers to claim an aggregate credit of $1,500 under § 25C for the 2009 and 2010 tax years. However, the 2010 Act amended § 25C(b) to provide a lifetime limitation of $500 of which no more than $200 may be attributable to expenditures on windows. Thus, a taxpayer who has claimed less than $500 in total for all previous years is eligible for the § 25C credit in 2013. For example, a taxpayer who claimed a § 25C credit in the amount of $100 in 2006 and $50 in 2007 for non

3Source: 2009 International Energy Conservation Code, copyright 2009. Washington, DC: International Code Council. Reproduced with permission. www.iccsafe.org .

November 18, 2013 530 Bulletin No. 2013–47

such sealant as long as the taxpayer satisfies the other requirements of § 25C.

Q–19: The manufacturer of a radiant barrier would like to certify that its product is eligible for the § 25C credit. Can the manufacturer refer to the U-factor as an alternative to the R-value when determining if the requirements of the 2009 IECC are satisfied?

A–19: Yes. Section 25C requires that an insulation material or system meet the prescriptive criteria for such material or system, established by the 2009 IECC, as in effect on February 17, 2009. The 2009 IECC established criteria for insulating materials to reach certain minimum R-values, which measures the material’s ability to stop heat transfer. Instead of the R-value, section 402.1.3 of the 2009 IECC allows taxpayers to use the U-factor, which measures the amount of heat transmitted through a given assembly, as an alternative criterion. Thus, a manufacturer of a radiant barrier can use the U-factor instead of the R-value if measured in compliance with the provisions of section 402.1.3 of the 2009 IECC, as in effect on February 17, 2009.

Q–20: Is a window sash replacement kit considered an exterior window under § 25C(c)(2)(B) that is eligible for the § 25C credit?

A–20: Yes. Although window sash replacement kits are generally comprised of only the sashes, glazing, and adjacent parts and are not whole windows, the Service considers the kit an exterior window for purposes of the credit. To be eligible for the credit, pursuant to § 25C(c)(1), the window sash replacement kit must meet the requirements of the Energy Star program.