topic Re: Energy Tax Credit Entry Question in Deductions & credits

Energy Tax Credit Entry Question

joebrez73 — Mon, 23 Feb 2026 10:27:48 GMT

I had a new HVAC system installed this year. It had 3 parts, the AC Unit, Advanced Fan and the HE Furnace. I have certificates for all 3. The install doesn't show the itemized parts for each unit though.

Do I just take the total, divide by 3 and use that number in all 3 entries?

I also had a roof don't with Energy Star Shingles, so I'll be entering that also.

Re: Energy Tax Credit Entry Question

PattiF — Mon, 23 Jan 2023 16:18:05 GMT

Yes, you would be able to divide the total cost of the HVAC system that you installed by three to use that number to enter in the tax return. The HE Furnace is probably the most expensive of the three components followed by the AC Unit. You could divide the total cost and place more of the dollar amounts for those two items. Just make sure that the total equals the total on the invoice.

You can enter all of the items including the Energy Star Shingles into TurboTax by following these instructions from DoninGA:

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

Or enter energy improvements in the Search box located in the upper right of the program screen. Click on Jump to energy improvements

On the screen Tell Us How Much You Paid for Energy-Saving Improvements, enter the amounts for the unit.

Re: Energy Tax Credit Entry Question

joebrez73 — Mon, 23 Jan 2023 16:46:09 GMT

Fantastic.

I read the IRS notes and could not make heads or tails out of it. Can I stack credits?

Meaning, I had the HVAC and did the Roof with Energy Star. Looks like Turbo tax does a max of $500 for everything.

Re: Energy Tax Credit Entry Question

joebrez73 — Mon, 23 Jan 2023 16:50:47 GMT

Or does it make more sense to claim one this year and one next year as a carryover?

HVAC 2022

Roof 2023

Re: Energy Tax Credit Entry Question

Vanessa A — Mon, 23 Jan 2023 19:39:27 GMT

You can only claim the credit in the year you made the improvement. This means if you made both improvements in 2022, you would need to take the credit for both in 2022.

The energy credit for 2022 cannot be carry forward.

The maximum credit is $500 combined for the Energy Efficient Home Improvement Credit which is what both your roof and HVAC system fall under. The limit for this credit is $1,200 for 2023 if you make additional improvements next year.

Re: Energy Tax Credit Entry Question

joebrez73 — Mon, 23 Jan 2023 19:58:55 GMT

OK thanks. The HVAC tapped out the credit without the roof.

It threw me, when TT asked me if I had any carry-over Energy Credits from 2021. My thought is since the HVAC maxed of the credit, the Roof could be the carryover for next year.

I guess, I picked the wrong year for energy credits! LOL