Can I deduct the cost of our on demand hot water heater under "Furnaces and hot water boilers powered by natural gas propane or oil."?

[lffh]

I am confused about energy saving improvements and what is deductible. We installed a Navien on demand hot water heater and I don't understand where to put the cost.

[LindaA · Accepted solution]

No, don't deduct the cost under "Furnaces and hot water boilers". If this is a qualifying non solar water heater, you'll enter the cost under "Energy-Efficient Building Property". (Click the screenshot below for reference.)

Where do I enter qualified energy-saving improvements?    https://ttlc.intuit.com/replies/4793870

[lffh]

Thank you. I appreciate the help.

[LindaA]

My pleasure.

[lffh]

A new addition. I did the above and then we were suppose to report any prior year energy credit. The line it takes me to in 2010 is zero, page 2 of form 5695 shows our solar well credit of $6900. I guess I just follow Turbo and fill in the zero for line 11.

[LindaA]

@Lue2010 The credit that applies to solar property (Residential Energy Efficient Property Credit) is handled separately from the credit that applies to your energy-efficient hot water heater (Nonbusiness Energy Property Credit), so the $6,900 solar credit doesn't limit the credit for your hot water heater.

[lffh]

Thank you Linda. I decided that must be the case after reading a bit more about the credits. I don't like wasting people's time but I do appreciate the confirmation.

[LindaA]

@Lue2010 Happy to help, and it's always a good idea to confirm before filing.