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Only those improvements made on residences “substantially completed” before April 20, 1977, may be claimed as energy conservation expenditures; equipment installed must be new and expected to last at least three years. Renewable energy source expenditures, however, may be claimed for new residences.
The secretary of the treasury will set performance and quality standards for energy-saving equipment; after the standards are released, materials must conform in order to qualify for the tax credit.
Cooperatives and condominiums are included in the tax credit programs, as are units occupied by more than one household. Separate rules apply in such cases.
If you completed an eligible energy savings practice and didn’t get credit on your income tax, you may want to file an amended return. Write for lists of qualifying expenditures and more detailed information about the energy tax credits. A taxpayer should consult Internal Revenue Service publication 903, “Energy Credits for Individuals: and Form 5695, “Energy Credits.”
I have in the office an excellent booklet with stepby-step instructions on in
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