Home Repairs - Energy-saving Credit?

[seanwk14]

I own a home that flooded this past year. I had flood insurance, and they funded my repairs through a claim. Among the repairs were insulation replacement and a new, higher capacity/efficiency AC unit and Air Handler. Can I claim the energy-saving tax credits even though the purchase of materials was covered by insurance?

[GeorgeDenseff]

You can take a credit of 10%.  The additional credit of up to $500 is only for materials paid for by the homeowner.  You cannot claim the second credit because insurance paid for it.

[LeonardS]

No, you can not claim the energy-saving tax credit because you did not pay for the new, higher capacity/efficiency AC unit and Air Handler.  If you had paid for it out of pocket and it was qualified equipment, you would be eligible for the energy-saving tax credit.