New Construction & Energy Tax Credit

[ssjoeboe9]

I built my home in 2023 with a builder.

They standard optioned electric (tanked) hot water heater.

I opted to pay for (gas) tankless hot water heater instead.

Even though my home was new construction, I paid for an energy efficient tankless water heater.

Can I receive the credit? This situation is not defined.

[Vanessa A]

No.  The tankless hot water heater would fall under the Home Energy Efficiency IMPROVEMENT credit.  This credit is only available for improvements on existing homes.  It is not available for new construction.

The Residential Energy Credit is available for new construction.  This is alternative energy projects like wind or solar.  So if you would have installed a solar water heater, you would be able to get the credit on your new construction, but not for your gas tankless water heater. 

[ssjoeboe9]

How long does the home have to exist to get the improvement credit?

If tanked was installed first, then tankless was installed to replace it do you get the credit?

How is the situation defined?

[TomK2023]

Was the home ever occupied (lived in)?  New construction usually refers to structures that are brand new and have never been lived in.