New Windows Tax Credit Purchased by Non-Homeowner

Question

If my SO purchased new windows for our home but their name is not on the deed (and we are not married so filing seperatley)  - are they able to get the tax credit? It appears the answer is no - but since it's on my home am I able to recieve the tax credit even though I technically didn't pay for the upgrade?

MatthewD · Answer

Hi bbw,

Even if the windows are financed, you may still take the credit for the full price of the windows and installation.

bbw · Answer

https://community.freetaxusa.com/discussion/comment/6667#Comment_6667

Gotcha, and if the windows are financed? If I pay $2000 (enough to hit the cap) to the loan before I file would I be able to use the credit then?

MatthewD · Answer

Hi bbw,

Your are correct.  To qualify for the Energy Efficiency Credit, you must have a home you own and you must have paid for the improvements.  Without being on the deed, your significant other, cannot claim the credit.  And since you did not pay, neither can you.

Key Considerations:
 1. Ownership Requirement: The tax credit requires that you own the home.
 2. Payment Requirement: The credit is generally for the person who actually paid for the qualified, energy-efficient improvements.
 3. The "Gift" Argument: If your partner paid for the windows, they essentially gifted them to you. However, the IRS tax credit rules usually require the homeowner to pay for the improvements to receive the credit.
 4. Potential Solution: If your partner gifts you the money and you then pay for the windows, or if you transfer a partial interest in the home to your partner (e.g., via quitclaim deed), the situation may change.