topic Entering a Qualified Energy Property cost of a Water Heater diy labor and hydronic heating?. in Deductions & credits

Entering a Qualified Energy Property cost of a Water Heater diy labor and hydronic heating?.

stixoffire2 — Tue, 15 Apr 2025 03:18:06 GMT

1: When entering the cost of the water heater it says to include Labor. What can I put for Labor when I had to install the unit myself ? Do I just use the labor rates from the outrageous quotes I had received?

2: The water heater is also for my house heating - is there any way I can get a second credit for this unit?

Re: Entering a Qualified Energy Property cost of a Water Heater diy labor and hydronic heating?.

Vanessa A — Tue, 15 Apr 2025 13:54:30 GMT

No. You cannot take any deduction for the labor costs when you installed it yourself. You can only claim actual expenses paid to someone else or for the property.

A second credit? If you only installed the water heater/boiler, you can only claim the home improvement energy credit for the boiler, it is a listed item. If you would have done heating and air, then you could claim the credit for both as those are two separate items.

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
Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
- Doors, Windows and Skylights
- Insulation
- Natural Gas, Oil Propane Water Heaters or hot water boilers
- Furnaces
- Central Air Conditioners ($600 maximum Credit)
- Electrical Panel Upgrades
- Home Energy Audit (up to $150)
You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
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.
NOT available for new construction.

Re: Entering a Qualified Energy Property cost of a Water Heater diy labor and hydronic heating?.

stixoffire2 — Tue, 15 Apr 2025 23:26:23 GMT

So my water heater - which heats the water, and also heats the home is only one credit even though it is my "Furnace" and my Water Heater ?
Seems illogical because the Tax Credit is an incentive , I could have purchased a Heat-pump for the Furnace - to use more electricity, and a Heat-pump Water heater to use more electricity .. and got the credit for both even though I would use more electricity. Hmmm.

Re: Entering a Qualified Energy Property cost of a Water Heater diy labor and hydronic heating?.

Vanessa A — Tue, 15 Apr 2025 23:35:24 GMT

That is correct. Because the water heater is one item, you only get one credit. If you would have purchased both a heat pump furnace and a heat pump water heater, being two separate items, you could claim 2 credits.