Other Energy-Conserving Components Law and Legal Definition
According to 26 CFR 1.23-2 (Title 26, Internal Revenue; Chapter I, Internal Revenue Service, Department of the Treasury; Subchapter A, Income Tax; Part 1, Income Taxes; Normal Taxes and Surtaxes; Determination of Tax Liability; Changes in Rates During a Taxable Year), the term "other energy-conserving component" means “any item (other than insulation) that satisfies all of the following conditions:
(1) The original use of the item begins with the taxpayer.
(2) The item can reasonably be expected to remain in operation for at least 3 years.
(3) The item meets the applicable performance and quality standards prescribed in § 1.23-4 (if any) that are in effect at the time of the taxpayer's acquisition of the item.
(4) The item is one of the following items:
(i) A furnace replacement burner
(ii) A device for modifying flue openings
(iii) A furnace ignition system
(iv) A storm or thermal window or door
(v) Automatic energy-saving setback thermostat
(vi) Caulking and weatherstripping
(vii) Energy usage display meter
(viii) Components specified by the Secretary.”
