Home Energy Credit

[bearbyz]

We needed to replace our furnace and water heater, as well as a lot of other items in our house due to a lightning strike. Our insurance paid for all of it except for the deductible. The furnace and water heater meet the energy standards for the deduction.  Can we claim the credit for the two items as most of the cost was covered by our insurance money? 

[Vanessa A · Accepted solution]

Possibly. You could only use the amount that was not paid for by insurance to claim the credit.

Ex.  If the total cost was $10,000 and the insurance paid $9,000, you could only use $1,000 to claim the credit 

[bearbyz]

Thank you, I appreciate your help.