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Filling out the Home Energy Credit.. Filled in the "Cost of the most expensive heat pump water heater" but do i full in for "Cost of all other heat pump water heater(s)"

 
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4 Replies

Filling out the Home Energy Credit.. Filled in the "Cost of the most expensive heat pump water heater" but do i full in for "Cost of all other heat pump water heater(s)"

If there were no other heat pumps installed in your residence, there is nothing to enter.

Vanessa A
Expert Alumni

Filling out the Home Energy Credit.. Filled in the "Cost of the most expensive heat pump water heater" but do i full in for "Cost of all other heat pump water heater(s)"

How many homes did you install this on?  The credit is only available to be used on your main home.

 

The maximum credit amount is $2,000 even if you installed multiple units.  So if you paid $10,000 for the first heat pump water heater that was installed on YOUR MAIN HOME, you would only need to enter that one.  You cannot enter anything that was not installed on your home. 

 

The Home Improvement Energy Efficient 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:
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a is a nonrefundable credit. This means in order to claim the credit you must have a tax liability to offset it.  If you do not have a tax liability equal to the credit the credit will be reduced to match your liability or down to $0. 
  •  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.
  • Doors, windows and insulation must be installed on your primary home.
  • The home must be in the US

 

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Filling out the Home Energy Credit.. Filled in the "Cost of the most expensive heat pump water heater" but do i full in for "Cost of all other heat pump water heater(s)"

Perfect thats what i though but just wanted to make sure as there is only 1 i have installed but just wanted to make sure

kr7500
Returning Member

Filling out the Home Energy Credit.. Filled in the "Cost of the most expensive heat pump water heater" but do i full in for "Cost of all other heat pump water heater(s)"

The 30% credit for a heat pump water heater is not limited to your main home.

 

From IRS Fact Sheet FS-2025-01:

A taxpayer claiming the credit for electric or natural gas heat pump water heaters; electric or natural gas heat pumps; central air conditioners; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers; biomass stoves or boilers; oil furnaces or hot water boilers; and improvements to, or replacements of, panelboards, sub-panelboards, branch circuits, or feeders must have installed such property in a home located in the United States and used as a residence by the taxpayer. In this case, the taxpayer may rent the home in which such property is installed, and such property may be installed in the taxpayer’s second home.

 

This is different from other categories of energy improvements, such as insulation, doors, and windows that are limited to your main home.

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