topic Home Energy Credit Qualification in Deductions & credits

Home Energy Credit Qualification

GOLINDA3 — Tue, 10 Feb 2026 09:27:49 GMT

To qualify for energy improvement tax credit is it mandatiry to do a home energy audit prior to installation or do you still get the tax credit if you purchase an electric heat pump that is in the upper tier of energy efficiency which was installed by HVAC Company.

Re: Home Energy Credit Qualification

Vanessa A — Fri, 26 Jan 2024 14:40:23 GMT

No. The home energy audit is not required in order to claim the credits. You would still qualify for the credit without the audit. The type of heat pump will determine the amount of the credit.

The Home Improvement Energy Efficient Credit is a non-refundable credit

Worth up to 30% of costs with a maximum credit $2,000 for
- Air source heat pumps
- Heat Pump Water Heaters
- Biomass Stoves or Boilers
This credit is a use it or lose it credit. If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.

The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034

This credit is worth up to 30% of the cost of the equipment, with no maximum limit. The items that fall into this category are as follows:

Geothermal Heat Pumps
Small Wind Turbines
Solar Energy Systems
Fuel Cells
Battery Storage Technology

To enter these credits into TurboTax take the following steps:

Federal
Deductions and Credits
I'll Choose what I work on
Home Energy Credits which is under the "Your Home" category

The energy credit section is not currently up to date. There is a release scheduled for January 31st that is supposed to update the energy section. So, it is best to wait until after that date to enter your heat pump purchase so you get the correct credit amount.

Re: Home Energy Credit Qualification

GOLINDA3 — Fri, 26 Jan 2024 14:56:08 GMT

I did not see the option for Air Source Heat Pump on Turbotax under the Home Energy Credits

Re: Home Energy Credit Qualification

DoninGA — Fri, 26 Jan 2024 14:57:45 GMT

@GOLINDA3 wrote:

I did not see the option for Air Source Heat Pump on Turbotax under the Home Energy Credits

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 01/31/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

Re: Home Energy Credit Qualification

Vanessa A — Fri, 26 Jan 2024 14:59:36 GMT

That section is not updated. Wording may be different, wording may end up being different, but I am not sure. However, the credit is specifically worded on energystar.gov as Air Source Heat pump.

It really is best to wait until after the updates to try to do anything in that section of TurboTax.