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milanojk22
New Member

Hi, i would like to discuss the Residential Energy Credits

 
4 Replies
GiseleD
Expert Alumni

Hi, i would like to discuss the Residential Energy Credits

What specifically would you like to know about residential energy credits?

 

Here is some general information about these credits:

 

Nonbusiness Energy Property Credit

 

The Nonbusiness Energy Property Credit is for existing main homes. It applies to building envelope components such as doors, windows, insulation, and heat resistant roofs, along with heating, air conditioning, stoves, and water heaters.

 

Credit amount

The total combined credit limit is $500 for all years after 2005. 

 

Subsidized energy financing

Expenditures made from financing provided under a federal, state, or local program, the principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy, cannot be used to calculate the credit.

 

Carryovers 

The Nonbusiness Energy Property Credit is nonrefundable and unused amounts are not carried forward.

 

Residential Energy Efficient Property Credit

 

The Residential Energy Efficient Property Credit applies to solar and wind power property and geothermal heat pumps. The credit is available for both existing homes and homes being newly constructed.

 

Credit rate 

In 2019, the credit rate is 30% of the cost of eligible property. The cost of labor is included when calculating the credit. For the Residential Energy Efficient Property Credit, (solar and wind power, geothermal heat pumps), there is no annual limit on the amount of credit allowed.

 

In future years, the credit rates are:

 

• 2020: 26%

• 2021: 22% 

 

Qualifying solar panels 

Solar roofing tiles and shingles that serve both as traditional roofing and solar electric collectors qualify for the credit. Structural components such as a roof’s decking or rafters that serve only a roofing or structural function do not qualify for the credit. 

 

Carryovers 

The Residential Energy Efficient Property Credit is not refundable, but unused amounts may be carried forward to the following year.

 

New construction 

The expenditure is considered made when the property is placed in service.

 

Swimming pools and hot tubs 

Costs allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage do not qualify for the Residential Energy Efficient Property Credit.

 

More information can be found here: Form 5695 Residential Energy Credits

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SteamTrain
Level 15

Hi, i would like to discuss the Residential Energy Credits

You should note though, that the TTX forms for the Energy credits are not due to be ready until ~29 Jan

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
tfrank55
New Member

Hi, i would like to discuss the Residential Energy Credits

I have already filed my return and have received a refund. I need to file an amended form to take a credit for Solar Sun Tunnels. How do I do that?

JohnW222
Expert Alumni

Hi, i would like to discuss the Residential Energy Credits

@tfrank55

"Solar Sun Tunnels" qualify as Solar Electric Property and need to be reported on Form 5695, Residential Energy Credits

Per the Instructions for Form 5695, these are to be claimed on line 1 of the form.

Please see the TurboTax Help article "How to amend (change or correct) a return you already filed" for instruction on how to amend your previously-filed tax return. 

Once in the return in TurboTax Online, you'll

  1. Go to Deductions & Credits
  2. Go to Your Home
  3. Go to Home Energy Credits

and proceed through the interview questions.

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