Energy Tax Credit?

old medic

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Its come to my attention that we may have overlooked saving some money on taxes. Since we bought and remodeled this house as our primary residence, its not a new construction. We have spent thousands of dollars on materials that should qualify. I need to go back through piles of receipts for stuff and try and sort out what we might can use. Was surprised to find out the Fridge we bought qualifies. The rules seem confusing..... Front door was $1000, but can only take 30% up to &600, Is the storm door a separate $600.... and such. Max credit is $1200 ... But appears a separate of up to $2000 for a mini split system. Can take them up untill 2032. Any wisdom from the wise.
 
I'm following this thread. Where can I get specifics on this Energy Tax Credit ?

We replaced one of our HVAC units this year with a high SEER model. Received a nice rebate from Dominion Energy. Looking for additional Tax Credits.
 
I do not see anything about a Fridge...

What other appliances might qualify?
 
I'm not certain but as far as I know, appliances don't qualify at all.
 
if you read through the instructions for Form 5695 I think it covers everything pretty well.

Thank you Sir. I'll check into these details. I think high SEER HVAC qualifies as a 30% Tax Credit.

I'm not sure Turbo Tax is savvy enough to find that form for me.
 
I haven't fully studied the details yet, but I plan on doing that work to address this when I start my taxes later this month. I put in a new furnace and AC unit last February. From a quick read, I think that gets me a tax credit of $600 for each of them - $1200 total. But my preliminary numbers indicate I may be capped in the range of $1100 because that's what my total tax for the year is looking like. It's all estimates at this point until I get my 1099s. The credit is a non-refundable tax credit. Meaning it can't be more than your total tax due for the year. But I'll take any credit I can get.

TurboTax indicates the required form will be available on January 18th.
 
often a late add. I generally don't start my own return until the updates in HRB settle down to a dull roar in mid-March. I don't think the IRS is even open for business until the end of the month. I am expecting this year to be messy.
 
Like all gub-mint documents, that 5695 is a tough read.

I'm not certain if the new 16 SEER HVAC unit we had installed is worthy of two $600 Tax Credits or just the one. We'll see what TT has to say about it.
 
Like all gub-mint documents, that 5695 is a tough read.

I'm not certain if the new 16 SEER HVAC unit we had installed is worthy of two $600 Tax Credits or just the one. We'll see what TT has to say about it.
is it a heat pump or an A/C? I think you get one or the other.
 
We have received both fed and state tax credits in the past. It was the installers who gave me the information, the paperwork and told me where to go online to get info on filing.
One was for our furnace and one on our windows if I remember correctly. It was several years ago.
 
A couple of generic comments:

1. The credit rules are arcane. It's common for installers or sellers of such products to claim that their products or services qualify for the credit when they do not. Ask your tax preparer, not the person who installs your energy efficient item.

2. The rules have changed frequently over the past five years. If this thread inspires you to go back to 2023 or 2022, the rules may be different, so check the correct version of the instructions for Form 5695.

3. An annoying rule is that any credit on 5695 reduces the cost basis of your home. So you're supposed to track that 5695 credit info with your home basis information and reduce the basis (and increase your tax liability possibly) when you go to sell.

4. States often have energy credits, and the rules are almost always different from the federal rules. So you get to mix and match as appropriate.

5. There are all sorts of limits that apply; hopefully your tax software applies them correctly. If you're using a low cost or low assistance tax software or doing them by hand, keep this in mind.
 
There are a lot of options. I think energy utility companies are required to provide assistance in finding programs (to include tax credits), at least here in my location they do. The overview is here Home energy tax credits | Internal Revenue Service and the lists of eligible products is here https://www.energy.gov/policy/artic...-efficient-clean-energy-tax-credits-consumers. It comes down to scrolling through a spreadsheet to find your specific model. We even got it for some window blinds this year.
 
Can you cite a reference for this? I can't find any such reference on the IRS forms or in my TaxAide training materials.
Right; I have seen nothing authoritative that even suggests appliances qualify.
 
It was on the Energy Star site. The rule are so convoluted its hard to understand.

This may be an example of my first comment: "It's common for installers or sellers of such products to claim that their products or services qualify for the credit when they do not. Ask your tax preparer, not the person who installs your energy efficient item." Unscrupulous sellers, which are many, take advantage of the arcane tax rules and imply or state a tax benefit which later is found to be inaccurate.
 
I would caution anyone looking to take advantage of these tax credits in 2025 that things can change at any time. It makes it difficult to plan. We will probably be installing a heat pump this year, but are not counting on the tax credit to be available. We have friends who pushed the installation of solar up into December of 2024, hoping that at least projects completed during the calendar year will qualify.
 
This may be an example of my first comment: "It's common for installers or sellers of such products to claim that their products or services qualify for the credit when they do not. Ask your tax preparer, not the person who installs your energy efficient item." Unscrupulous sellers, which are many, take advantage of the arcane tax rules and imply or state a tax benefit which later is found to be inaccurate.
I see this all the time at TaxAide. Contractors and retailers making invalid assertions about credits. and then there is the whole discussion about needing a tax liability to absorb them.
 
is it a heat pump or an A/C? I think you get one or the other.
Thanks jebmike, for your input on this thread....it's invaluable.

The unit we installed last October is the combination Gas Furnace and CAC. We've already received a $500 rebate from Dominion Energy on this.

I'm looking at Line 22a for the highest efficiency Central Air. Or Line 24a for the highest efficiency Gas Furnace to get us the Tax Credit. This is not a Heat Pump type unit.
 
I installed a new Heat pump this year that qualifies for the $2000 federal tax credit and the TVA gave us back $500.
 
I installed a new Heat pump this year that qualifies for the $2000 federal tax credit and the TVA gave us back $500.
We also got a new heat pump last year, and everything indicates that it qualifies for the $2K credit, so I'll take it since we paid over $12K for it. I agree that the 5695 form is a bit hard to make sense of.
 
I've gotten a few rebates from our electric co-op but never took the time for the tax credits.
These were for battery chainsaw, leaf blowers, led bulbs, etc.
 
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