Question

How do I subtract the cost of installation from the invoice (for the tax credit)?

Answer

The tax credit does not cover the installation/labor costs for insulation, windows, doors, or roofs.

Contractors should provide an itemized bill that separates the product cost (ex: windows) from the installation/labor cost. Insulation, windows, doors, and roofs are eligible for a tax credit of 30% up to $1,500 for the cost of the product only.

If possible, ask the contractor before contracting their services to provide an itemized bill. Asking ahead of time will help ensure they provide you with the correct information so you can claim the proper amount for the tax credit.