Home energy credit

[LakotaMarine]

I replaced all exterior windows on my home energy efficient windows for $12200.00.  No matter how I input data on the required screens it reflects a credit of $ 0.  How can get this data to process for the credit?

[Bsch4477]

The form for residential energy credit won’t be available until late January. 

https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[Opus 17]

First, you probably need to wait.  That section of the program might not be ready yet.

Second, the maximum credit for window replacement in 2022 is $200.  That is also a lifetime limit going back to 2008, and there is a $500 lifetime limit for all energy efficient improvements under this code section (windows, doors, skylights, insulation, air conditioner, furnace).  So if you claimed the credit before, you may no longer be eligible.

Unfortunately, the credit for efficient windows is much more generous starting in 2023, but if you installed the windows in 2022, you must follow the old rules. 

[NCperson · Accepted solution]

@LakotaMarine - also, what is on Line 18 of Form 1040..... the energy credit is a 'non-refundable' credit, so Line 22 can't be less than zero.  if Line 18 is 0, then there is no credit to be had.  worth checking. 

[LakotaMarine]

Thanks for the information.  Very helpful.

[bohueilin]

What about Energy Credit for Furnace? 
I am wondering whats the requirements for 2023?  

Reference: https://www.carrier.com/residential/en/us/homeowner-resources/federal-tax-credits/#:~:text=Tax%20Sec.... 

Where 2023 stated that the requirement: ≥97% AFUE

Does anyone know if a furnace of: ≥96.5% is eligible for 2023 Tax Reason?? (up to Tax Credit Amount:  $600)

I am reading 2022 was:

Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.

Tax Credit Amount:  $150

Requirements
AFUE >= 95

[Opus 17]

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@bohueilin wrote:

What about Energy Credit for Furnace? 
I am wondering whats the requirements for 2023?  

Reference: https://www.carrier.com/residential/en/us/homeowner-resources/federal-tax-credits/#:~:text=Tax%20Sec.... 

Where 2023 stated that the requirement: ≥97% AFUE

Does anyone know if a furnace of: ≥96.5% is eligible for 2023 Tax Reason?? (up to Tax Credit Amount:  $600)

The old law, put in place in 2009, said the efficiency standard was the "top tier" as defined by the CEE in 2009.

The revised law, which takes effect 1/1/23, says the efficiency standard is the "top tier" (not counting any "advanced tier") as defined by the CEE as of January 1 of the tax year in which the property is installed.  So for 2023, you need the 2023 CEE standard.  For 2024, you would use the most recent CEE standard (2023 if they did not update it again, 2024 if they did update it) and so on.

CEE is here.

https://cee1.org/content/cee-tiers-and-energy-star

https://cee1.org/index.php/content/cee-program-resources

For a residential forced air gas furnace, the top tier in 2023 (not counting the advanced tier) is tier 3, which is ≥97%.  So 96.5% will not be eligible if installed in 2023.  It would be eligible if installed in 2022, because 96.5% was in the top tier in 2009.

[bohueilin]

Thank you @Opus 17 

So the furnace i am looking is Bryant: Link: https://www.bryant.com/en/us/products/gas-furnaces/915s/#productReview

This model seems like ≥96.5%.

I was searching on the CEE site and confirmed this Bryant model number (915SB42060E17) is there

https://www.ahridirectory.org/NewSearch?programId=64&searchTypeId=4#

Seems like this site/database is outdated and does not represent the eligibility models installed in 2023?

Thanks

[Opus 17]

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@bohueilin wrote:

Thank you @Opus 17 

So the furnace i am looking is Bryant: Link: https://www.bryant.com/en/us/products/gas-furnaces/915s/#productReview

This model seems like ≥96.5%.

I was searching on the CEE site and confirmed this Bryant model number (915SB42060E17) is there

https://www.ahridirectory.org/NewSearch?programId=64&searchTypeId=4#

Seems like this site/database is outdated and does not represent the eligibility models installed in 2023?

Thanks

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If you scroll right, you will see that all the Bryant models with that number are listed in CEE tier 2.

If you download the CEE tiers for residential gas forced air furnace, you will see that in the latest specification dated 2021, there are three tiers plus an advanced tier.

Under the law, the property must be in the top tier not counting advanced tiers, that's tier 3 for that type of property.  Since your furnace is in tier 2, it does not qualify.

[bohueilin]

I see, @Opus 17 

Thank you, so Tier 2 is only eligible for year 2022. Which has lower credit too (upto $150)

Thanks

[Opus 17]

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@bohueilin wrote:

I see, @Opus 17 

Thank you, so Tier 2 is only eligible for year 2022. Which has lower credit too (upto $150)

Thanks

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The top tier in 2009 was 94%, so anything over 94% would be eligible for the smaller credit if it was installed in 2022.

Remember, the credit is claimed when the furnace is actually installed and turned on, regardless of when you ordered it or paid for it.  You can't choose to claim your furnace for 2022 if it was installed in 2023. 

[kristinelise57]

Well, I just read on the IRS web site:

"There is no lifetime limit for either credit; the limits for the credits are determined on a yearly basis. For example, beginning in 2023, a taxpayer can claim the maximum Energy Efficient Home Improvement Credit allowed every year that eligible improvements are made."

[DoninGA]

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@kristinelise57 wrote:

Well, I just read on the IRS web site:

"There is no lifetime limit for either credit; the limits for the credits are determined on a yearly basis. For example, beginning in 2023, a taxpayer can claim the maximum Energy Efficient Home Improvement Credit allowed every year that eligible improvements are made."

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The information posted above in this thread was for tax year 2022 which was correct.

For tax year 2023 that information has changed.

The IRS Form 5695 Residential Energy Credit for tax year 2023 is not yet finalized in TurboTax.

The form is currently scheduled to be available on 01/17/2024 (subject to change)

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[DawnC]

Here is the current IRS guidance on the energy efficient home improvement credit:

These expenses may qualify if they meet requirements detailed on energy.gov:

• Exterior doors, windows, skylights and insulation materials
• Central air conditioners, water heaters, furnaces, boilers and heat pumps
• Biomass stoves and boilers
• Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022: 30%, up to a lifetime maximum of $500
• 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit

Get details on the Energy Efficient Home Improvement Credit.    @kristinelise57