topic Energy Effeffiency credits in Deductions & credits

Energy Effeffiency credits

7777Renee — Tue, 24 Feb 2026 06:42:55 GMT

Why does turbo tax only give me $150 deduction for a 2022 heat pump costting $16,680?

Re: Energy Effeffiency credits

DoninGA — Wed, 21 Jun 2023 19:25:17 GMT

What type of heat pump? Electric or Geothermal?

An electric heat pump is eligible for a $300 Energy Efficient Home Improvement Credit reported as qualified energy property.

A Geothermal heat pump that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home is eligible for 30% of your costs as a Residential Clean Energy Credit

IRS Form 5695 Residential Energy Credits instructions - https://www.irs.gov/pub/irs-pdf/i5695.pdf

Qualified geothermal heat pump property costs. Qualified geothermal heat pump property costs are costs for qualified geothermal heat pump property installed on or in connection with your home located in the United States. Qualified geothermal heat pump property is any equipment that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. To qualify for the credit, the geothermal heat pump property must meet the requirements of the Energy Star program that are in effect at the time of purchase. The home doesn't have to be your main home.

Re: Energy Effeffiency credits

SteamTrain — Wed, 21 Jun 2023 19:08:19 GMT

...and if it was an Electric Heat Pump, you may have put your expenses on the wrong line in the interview.

1)...For an Eletric Heat Pump, the $$ go on the line for "Energy-Efficient Building Property"....and that's up to $300 max.

2)....for a Geothermal Heat Pump, you skip the page with the Windows, Doors, AC, etc, and on a later page as you step thru, there is one that lists the Solar and Wind Energy items...that page has a specific line for the Geothermal Heat Pump $$ entry.