Energy conservation expenditures
Energy conservation expenditures -
(1) In general. The term “energy conservation expenditure” means an expenditure made on or after April 20, 1977, and before January 1, 1986, by a taxpayer for insulation or any other energy-conserving component, or for labor costs allocable to the original installation of such insulation or other component, if all of the following conditions are satisfied:
(i) The insulation (as defined in paragraph (c)) or other energy-conserving component (as defined in paragraph (d)) is installed in or on a dwelling unit that is used as the taxpayer's principal residence when the installation is completed. See § 1.23-3(e) for the definition of principal residence.
(ii) The dwelling unit is located in the United States (as defined in section 7701(a)(9)).
(iii) The construction of the dwelling unit was substantially completed before April 20, 1977. See § 1.23-3(f) for the definition of the terms “construction” and “substantially completed”. In the case of expenditures made with respect to the enlargement of a dwelling unit, the construction of the enlargement must have been substantially completed before April 20, 1977.
(2) Examples. The application of this paragraph may be illustrated by the following examples:
(b) Renewable energy source expenditures. The term “renewable energy source expenditures” means an expenditure made on or after April 20, 1977, and before January 1, 1986, by a taxpayer for renewable energy source property (as defined in paragraph (e)), or for labor costs properly allocable to the on-site preparation, assembly, or original installation such property, if both of the following conditions are satisfied:
(1) The renewable energy source property is installed in connection with a dwelling unit that is used as the taxpayer's principal residence when the installation is completed. See § 1.23-3(e).
(2) The dwelling unit is located in the United States (as defined in section 7701(a)(9)).