can I file for HVAC tax credits for a not for profit rental?

user17718062584 · ‎February 22, 2026

I own a home where a friend pays minimal rent ( way below market value). I report that income as a not for profit rental. I installed a new HVAC system in the home 2025. The unit meets the requirements for the energy efficient home improvement tax credit. Can I file for the tax credit on this home?

MindyB

Unfortunately, you cannot claim the Energy Efficient Home Improvement Credit because the IRS requires the property to be used as your own residence to qualify. Since the home is used as a rental, even on a not-for-profit basis, it is ineligible for this specific consumer tax credit. However, you may still be able to add the cost of the HVAC system to your property's cost basis, which can provide a tax benefit when you eventually sell the home.

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MindyB

Unfortunately, you cannot claim the Energy Efficient Home Improvement Credit because the IRS requires the property to be used as your own residence to qualify. Since the home is used as a rental, even on a not-for-profit basis, it is ineligible for this specific consumer tax credit. However, you may still be able to add the cost of the HVAC system to your property's cost basis, which can provide a tax benefit when you eventually sell the home.