2019 Home Energy Tax Credit for Air Source Heat Pump (not Geo Thermal)

[billyc1958]

I installed a new high efficiency AC/Heat Pump in 2019 (central HVAC unit).  It appears that the Central AC system qualifies for a $300 home energy tax credit.  Additional research seems to indicate an Air Source Heat Pump could also qualify for a $300 home energy tax credit.  A few questions- some information I see implies that the central AC/heat pump systems may only qualify for a credit if they are geo-thermal systems- can anyone confirm this?

Also, if each system does qualify for a $300 tax credit, is it capped overall at $500? 

Lastly, if the air source heat pump qualifies for the home energy tax credit- how does one enter this in Turbo Tax?  I don't see an input for heat pumps (only geo-thermal) in Turbo Tax.

Thank you!

[DoninGA]

For the electric heat pump $300 credit - Enter the cost in the box labeled Energy-Efficient Building Property on the screen labeled Tell Us How Much You Paid for Energy-Saving Improvements

An electric heat pump that achieves the highest efficiency tier established by the Consortium of Energy Efficiency (CEE) as in effect on January 1, 2009

The total nonbusiness energy credit claimed is limited to $500 for all tax years.

[billyc1958]

Thank you for the reply!  So- my new central AC system that was also installed in 2019 would qualify for a $300 tax credit.  It appears the input for the AC is the same box for the heat pump.  Am I to assume I can only get a $300 credit for both the heat pump and AC?

Also, I had home energy credit in 2009 that was used on another home that I owned previously.  Does the 2009 credit reduce the maximum credit in 2019 I qualify for, or does it not apply since the 2009 credit was for energy improvements on my previous home?

[DoninGA · Accepted solution]

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@billyc1958 wrote:

Thank you for the reply!  So- my new central AC system that was also installed in 2019 would qualify for a $300 tax credit.  It appears the input for the AC is the same box for the heat pump.  Am I to assume I can only get a $300 credit for both the heat pump and AC?

Also, I had home energy credit in 2009 that was used on another home that I owned previously.  Does the 2009 credit reduce the maximum credit in 2019 I qualify for, or does it not apply since the 2009 credit was for energy improvements on my previous home?

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The credit is $300 regardless of the number of units of Energy-Efficient Building Property you installed.

The total combined credit limit of $500 for all tax years after 2005 is for your main home in 2019.  The total credit is by home, not by taxpayer.