Home Energy Tax Credits claim 2024

[JDChing130]

Upon reading articles mentioned below, see on the form says no more than $600.00 can be claimed. Although, says this on Form 5695 one would claim up to $2000.00?

Which projects qualify for the heat pump part of the credit?

Heat pumps and biomass stoves or boilers have a credit limit of 30% of costs up to $2,000 for 2024 expenses. New heat pumps, water heaters, and biomass stoves and boilers qualify. And one perk: the cost of installation also counts toward the credit.

Form 5695 -

23a Enter the cost of natural gas, propane, or oil water heaters . . . . . . 23a b Multiply line 23a by 30% (0.30). Enter the results. 

Do not enter more than $600

[DaveF1006]

Yes, what it's saying is that costs are capped at $2000 and the credit is capped at $600, which is based on ($2000)(.30). 

Eligible projects for the heat pump credit include:

• Air-source heat pumps that meet specific energy efficiency standards.
• Heat pump water heaters.
• Biomass stoves and boilers.

Additionally, the installation costs for these projects are also included in the credit calculation.