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gmas847
Returning Member

I purchased a new construction home in 2020 that is energy efficient including gas and appliances, does that qualify for any energy tax credits?

 
4 Replies
JohnW152
Expert Alumni

I purchased a new construction home in 2020 that is energy efficient including gas and appliances, does that qualify for any energy tax credits?

No, energy credits are only available for improvements you make after you buy or build a house.

[Edited 2/24/2021 | 10:36 am PST]

Opus 17
Level 15

I purchased a new construction home in 2020 that is energy efficient including gas and appliances, does that qualify for any energy tax credits?

No.  You may be able to claim a tax credit for items you install after you own the home.  You are not entitled to any tax credit for efficient items installed by the builder before you owned the home, although the builder may have received some credits.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Opus 17
Level 15

I purchased a new construction home in 2020 that is energy efficient including gas and appliances, does that qualify for any energy tax credits?

I slightly misspoke above.

There are two energy efficiency credits.

 

The nonbusiness energy property credit covers efficient doors, windows, hot water, and heating and cooling (heat pump or furnace and A/C).   This credit can only be claimed for upgrades and improvements you pay to a home you already own.  

 

The residential energy efficient property credit covers installation of alternative energy sources like solar, wind, geothermal and fuel cell power generation.  This credit is available for items installed to a home under construction, as long as you pay the cost.  If the builder installs it and you pay the builder a higher price at closing, you can't use the credit.  But if you contract with the solar or geothermal installer and pay for the installation yourself, you can claim the credit even if the home is under construction at the time.

 

There is no federal tax credit for other energy efficient appliances such as refrigerator or washer/dryer, no matter when you purchased them. 

 

See the instructions to form 5696.

 

@gmas847 

@JohnW152 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
gmas847
Returning Member

I purchased a new construction home in 2020 that is energy efficient including gas and appliances, does that qualify for any energy tax credits?

Thank you

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