Can I claim both the Nonbusiness Energy Property Tax Credit and Residential Renewable Energy Tax Credit for the same biomass stove installation?

[mrbman7]

One credit is for 10% and the other is for 26% credit. I know outdoor wood boilers qualify for the 26% credit, but when I click on the "Energy Efficient Building Property" Learn More link, it also lists the biomass stoves. Since I am asking about the same installation (only one stove) the "your cost" section would be the same value for both...

[JohnW152 · Accepted solution]

No, you can’t.

In fact, the Consolidated Appropriations Act of 2021 repealed the credit that was previously available for a stove that uses the burning of biomass – including pellets – to heat your home.  

In previous years, this would have been included in Part II of Form 5695, Nonbusiness Energy Property Credit.

Please see 2021 Instructions for Form 5695 for more information.

[SteamTrain]

@mrbman7 

The Energy Efficient Building Property explanation for Biomass in the "Learn More" text is only there because the TTX editors have failed to remove the "Biomass" part of the explanation...in spite of being told Biomass was now in another section several months ago...... BUT...At least they updated the 26% credit section to include the Biomass stuff in the software. 

[mrbman7]

@SteamTrain Thanks for the info. Wish I would have had it yesterday before I filed. Had to amend. TurboTax should update this... it's confusing and made me screw up my taxes the first time.

[SteamTrain]

@mrbman7 

Wait for your first filing to be completed and refund issued (or original balance due paid) before amending.

Your original filing cannot be stopped or intercepted.   Wait until you actually get your refund from the initial filing...only then should you complete your amendment and send it in...sometime in June or July is just fine.

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Of course, if you just filed, and it hasn't actually been "Accepted" yet, you do have to wait for that too, if the IRS rejects the original e-file, you can just edit out that problem entry, and fix whatever the IRS rejected it for, and re-efile.   But if they have already "Accepted" you original e-file, then amending would be required.

[mrbman7]

Well bummer, already sent in the amended return and it was accepted. What a mess. All thanks to TTX having bad directions. 

[SteamTrain]

@mrbman7 

IF the original was accepted, probably not a major issue.   An e-filed amended tax return wouldn't be accepted if the original one hadn't already been acccepted....but the refund vs payment could get scrambled some, depending on how you listed the original refund on the amended tax return. 

IF the IRS ends up having a problem with it, they'll send you a letter sometime in the next 12 months...deal with it then based on whatever they say.