Claming energy credit on my taxes

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Topic Author
meebers
Posts: 501
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Claming energy credit on my taxes

Post by meebers »

Greetings, I won't be able to use this until next year, but having a new more efficient air to air heat pump installed next week. There is conflicting advice from non tax experts that say I can claim this on my 1040 via an IRSform 5695. What I get out of it is this applies to geothermal heat pumps, not air to air. Appreciate any info if you have been able to claim this or have any additional info. Tx
Chip
Posts: 3994
Joined: Wed Feb 21, 2007 3:57 am

Re: Claming energy credit on my taxes

Post by Chip »

There are many restrictions, but an efficient air to air heat pump is eligible for the credit, assuming the rules don't change for the 2016 tax year. Read p. 2 of the 5695 PDF instructions under "Nonbusiness Energy Property Credit", subheading "Residential energy property costs".

Geothermal heat pumps get a better credit and are claimed on a different part of 5695.
Topic Author
meebers
Posts: 501
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Re: Claming energy credit on my taxes

Post by meebers »

Tx for the info. I have been looking at both the numbers from my 1040 and 5695, making notes and storing the certificates etc and will be putting them in a folder for 2016 (if the instructions/credits remain the same)
Valdeselad
Posts: 248
Joined: Mon Apr 26, 2010 1:42 pm

Re: Claming energy credit on my taxes

Post by Valdeselad »

It's unclear to me what exactly qualifies for this credit. In other words, do you need to follow the IRS guidelines to the letter or can you claim something which is clearly a significant energy efficient upgrade but is not explicitly stated. In my case, we bought and installed a new variable speed pool pump which is significantly more efficient than the one it replaced. But it doesn't seem as though we could claim that based on what the IRS says. This is a bit surprising to me given how much energy the old pool pumps use versus the new ones.
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HueyLD
Posts: 9782
Joined: Mon Jan 14, 2008 9:30 am

Re: Claming energy credit on my taxes

Post by HueyLD »

The energy credit amounts are so low that you haven't missed anything. Exceptions are for solar and geothermal.
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