I purchased a Performance Platinum Series ProTerra Hybrid Electric Water Heater in April 2021 and should get an Energy savings credit but cannot find exactly where to put this credit on the TurboTax premium. I see entry area for gas but not electric. Please help
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This can be claimed under Energy Efficient Building property. Please click the Learn more link next to the box for more information.
There are two types of credits, the first page covers solar, wind, geothermal and so on (energy production, basically) and the second page covers non-business energy efficient building property (furnace, windows, insulation, etc.)
Your heat pump water heater will go on line 22a as "energy-efficient building property." It also must meet the appropriate efficiency standard (UEF of 2.2 or higher).
Note the credit is 10% of the cost of the water heater plus installation, with a maximum of $300. There is also a lifetime maximum of $500 for this credit so if you previously claimed any credits for a furnace, air conditioner, doors, windows or insulation, your credit now may be reduced or disallowed.
Line 22a. Enter the amounts you paid for energy-efficient building property. Energy-efficient building property is any of the following.
• An electric heat pump water heater that yields a Uniform Energy Factor of at least 2.2 in the standard Department of Energy test procedure.
• An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) as in effect on January 1, 2009.
• A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2009.
• A natural gas, propane, or oil water heater that has a Uniform Energy Factor of at least 0.82 or a thermal efficiency of at least 90%.
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