Can I claim spray foam insulation and heat pump AC if i paid for out of pocket during new build and it wasnt part of the original house plans?

[claudia-galvan05]

Filing say not eligible for tax break if improvements done as part of new build but I want to be sure I understand that because I paid for the upgrades out of pocket, not in the loan so i should be able to claim it, right?

[DianeW777]

Yes you can claim an energy credit for the spray foam insulation and the heat pump.

• Where do I enter qualified energy savings improvements?
• Home Energy Tax Credits

Energy Efficient Home Improvement Credit

These expenses may qualify if they meet requirements detailed on energy.gov:

• Exterior doors, windows, skylights and insulation materials
• Central air conditioners, water heaters, furnaces, boilers and heat pumps
• Biomass stoves and boilers
• Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022: 30%, up to a lifetime maximum of $500
• 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit