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eseger13
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Can I claim home energy efficient improvements credit on an addition to my existing home?

 
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Vanessa A
Employee Tax Expert

Can I claim home energy efficient improvements credit on an addition to my existing home?

No.  This would be related to the construction of your home.  If you put a roof on the new addition, this would be considered new construction.  If you made upgrades that fall under the Residential Energy Credit, you would be able to claim these for the credit as new construction does qualify for the Residential Energy Credit. 

 

So the home energy improvement credits would not be able to be used for your new addition.  If you made any improvements to the rest of the home, such as upgraded the windows to match the new addition, these improvements would be eligible for the Home Energy Efficiency Improvement 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
  • 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
    • Furnaces
    • Boilers
    • Central Air Conditioners
    • 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.

 

 

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

This credit can be taken for new construction

 

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
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