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energy credits

we signed a contract in 2022 for a home improvement project that will include many actions that qualify for energy credits (e.g. installing energystar windows).

work on the project started in 2023 but we paid a 10% deposit on that contract in 2022. the deposit was roughly $20k which is more than some of the qualifying actions. 

am i able to include any of these credits on my 2022 return or do i have to wait for my 2023 return when the qualify actions will actually be performed? 

the deposit paid didn’t specify actions; it was simply 10% of the total contract price. the contract includes things like a new heat pump, windows, etc. 

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1 Reply
MayaD
Employee Tax Expert

energy credits

No. You may not claim the credits until the year the property is installed.

IRS.gov

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