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Can I claim a new energy efficient electric furnace and waterheater?

 
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Can I claim a new energy efficient electric furnace and waterheater?

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 -


Qualified energy property is any of the following.
• Certain electric heat pump water heaters; electric heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.


Enter the cost in the box labeled Energy-Efficient Building Property.

TomD8
Level 15

Can I claim a new energy efficient electric furnace and waterheater?

You can find the specific information as to which products qualify at this website:

https://www.energystar.gov/about/federal_tax_credits/air_source_heat_pumps

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Can I claim a new energy efficient electric furnace and waterheater?

You can claim a credit of up to 30% of the cost of these appliances.  You can include the cost of installation.  (I don't know what an "electric furnace" is.)

(i) An electric or natural gas heat pump water heater.
(ii) An electric or natural gas heat pump.
(iii) A central air conditioner.
(iv) A natural gas, propane, or oil water heater.
(v) A natural gas, propane, or oil furnace or hot water boiler.

 

The maximum credit you can claim per year for this type of property is $600.

 

For the credit, the appliance must be installed on a dwelling that you use as your main home (where you live most of the time).  You don't have to own the home, but it must be your main home.

 

"Efficient" for this credit means that it meets or exceeds the "highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service.)". This is not necessarily the same as Energy Star certification.  Check with the CEE (they have a web site) or the appliance manufacturer to confirm eligibility.

 

 

 

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