topic Energy Improvements project over 2 financial years in Deductions & credits

Energy Improvements project over 2 financial years

avsuren123 — Mon, 09 Mar 2026 09:01:01 GMT

I replaced windows and doors around the house. I signed up for the project in 2021 and paid about 40% as advance. Due to supply-chain issues, the doors arrived and were installed in Jan 2022. I repaid the remaining amount in Jan 2022.

How should I claim the credits for 2021?

Re: Energy Improvements project over 2 financial years

avsuren123 — Sat, 05 Mar 2022 23:25:27 GMT

Re: Energy Improvements project over 2 financial years

AnnetteB6 — Sun, 06 Mar 2022 01:14:31 GMT

According to the IRS Instructions for Form 5695 the costs of the energy-saving improvements are treated as being paid when the installation of the improvement is complete.

Therefore, since the installation was not complete until 2022, you will not claim the credit on your 2021 return.

@avsuren123

Re: Energy Improvements project over 2 financial years

avsuren1231 — Sun, 06 Mar 2022 01:56:42 GMT

AnnetteB6's response answers my question. Thanks Annette!