No. The home energy audit is not required in order to claim the credits. You would still qualify for the credit without the audit. The type of heat pump will determine the amount of the credit.
The Home Improvement Energy Efficient Credit is a non-refundable 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
- This credit is a 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.
The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034
This credit is worth up to 30% of the cost of the equipment, with no maximum limit. The items that fall into this category are as follows:
- Geothermal Heat Pumps
- Small Wind Turbines
- Solar Energy Systems
- Fuel Cells
- Battery Storage Technology
To enter these credits into TurboTax take the following steps:
- Federal
- Deductions and Credits
- I'll Choose what I work on
- Home Energy Credits which is under the "Your Home" category
The energy credit section is not currently up to date. There is a release scheduled for January 31st that is supposed to update the energy section. So, it is best to wait until after that date to enter your heat pump purchase so you get the correct credit amount.
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