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russelldorsey88
New Member

Does a new construction in AR qualify for energy efficient tax credits? Can I deduct the sales tax for the costs associated with this new home?

This was a new construction that was completed in 2017.  We installed energy efficient windows, doors, insulation, appliances, 100% LED, electric heat pump, and water heater.  The language makes It appears this credit may only apply to improvements.  Does AR allow me to deduct the sales tax for construction costs related to this build?

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CherylW
Level 3

Does a new construction in AR qualify for energy efficient tax credits? Can I deduct the sales tax for the costs associated with this new home?

For federal purposes, the credit for home improvements expired at the end on 2016, with the exception of certain solar equipment.

Form 5695 Expiration

If you itemize, you'll be able to deduct sales tax paid on the construction materials.  Tax paid combines with the rest of your itemized deductions, to come up with a total to be subtracted from your adjusted gross income, leaving you with your taxable income.

That figure transfers over to your AR return, so it doesn't get reported separately; it's already excluded from your AR return.


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1 Reply
CherylW
Level 3

Does a new construction in AR qualify for energy efficient tax credits? Can I deduct the sales tax for the costs associated with this new home?

For federal purposes, the credit for home improvements expired at the end on 2016, with the exception of certain solar equipment.

Form 5695 Expiration

If you itemize, you'll be able to deduct sales tax paid on the construction materials.  Tax paid combines with the rest of your itemized deductions, to come up with a total to be subtracted from your adjusted gross income, leaving you with your taxable income.

That figure transfers over to your AR return, so it doesn't get reported separately; it's already excluded from your AR return.


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