Does Aeroseal A/C duct sealing qualify for a tax credit under the Biden Energy Savings Law?

Forum|Forum|2 years ago
December 12, 2023
1 reply
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TurboTax Online

Opus 17

Level 15

Yes, however,

1. Turbotax has not updated form 5695 to the 2023 version yet to enter the credit. That is expected around January 10.

2. Labor is not allowed, only the cost of the product. You must make a "reasonable allocation" of the cost between labor and product and only claim for the product.

https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits-labor-costs

K B1

Level 2

"Reasonable allocation" is the problem. I found one company that stated the average cost of product for Aeroseal is 35% of the total cost of the service. (Then you would calculate 30% of that figure). This calculation needs to be standardized for the Aeroseal system. Would be nice if the parent Aeroseal company would update their website to confirm. I have a call in to the company that did our seal. Their answer will be interesting. So much time spent for this small tax credit calculation.

K B1

Level 2

As an update to what I posted earlier, I contacted the company that did our Aeroseal and they sent me the documents and told me that the entire Aeroseal process could be deducted. Until the Instructions for Form 5695 give more specific guidance, this will continue to be a gray area. I was also given advice by the other company to simply send the info to my CPA who "will know how to handle it". Yeah sure.