Deductions & credits
The IRS defines an electric heat pump as energy-efficient building property when defining what qualifies for an energy credit for a personal home. The heat pump can be added to the cost basis of the house. The installation of the heat pump may also be eligible for an energy credit that would reduce any tax liability on your 2022 tax return. If you do take the credit, you would deduct the amount of the credit from the total cost before adding it to the cost basis of your house.
Please see this TurboTax Tips about energy credits and energy savings.
