Electric Heat Pump

[MareP]

Under Deductions and Credits it says that "some electric heat pumps qualify for an energy credit" but I do not see where I can enter that information.

[DeanM15]

If your electric heat pump qualifies for an energy credit, you can enter it in the Home Energy Credits section of TurboTax.

• While signed in and working in TurboTax
• Click on Federal in the left-hand black menu
• Click on Deductions and Credits
• Scroll down and click on Show More next to Your Home
• Click on Start or Revisit next to Home Energy Credits

Geothermal heat pumps and electric heat pumps approved by Energy Starr are eligible for credits. 

[MareP]

I understand where to go on the deduction (Home Energy Credits )page but the election for electric heat pump is not there! Geo thermal and natural gas are the only selections I can make. I'm not even sure if mine qualifies but I have nowhere to enter it if it did.

Marianne

[DoninGA · Accepted solution]

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@MareP wrote:

I understand where to go on the deduction (Home Energy Credits )page but the election for electric heat pump is not there! Geo thermal and natural gas are the only selections I can make. I'm not even sure if mine qualifies but I have nowhere to enter it if it did.

Marianne

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For HVAC, electric heat pump water heater, natural gas, propane, or oil water heater, and a stove that burns biomass fuel to heat your home or heat water. Enter the cost in the box labeled Energy-Efficient Building Property.

[MareP]

I do not see a box "Energy-Efficient Building Property" option.

[DoninGA]

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@MareP wrote:

I do not see a box "Energy-Efficient Building Property" option.

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On this page when accessing the Home Energy Credits section under Deductions & Credits>Your Home

[MareP]

I am an idiot. I do see that box. Thank you!

[4153]

I replaced my electric A/C with a Goodman Heat Pump in 2020.  Is that deductible?

[DMarkM1]

Maybe.  If your heat pump meets these standards per the manufacturer documents.

An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) in effect on January 1, 2009.

Here is a link with 2009 CEE highest efficiency tiers. 

[1cooldudeinAZ]

How do I claim credit for 2 energy efficient heat pumps I installed in 2020?

I understand there is a $300 credit per heat pump.

I installed 2.

When I enter the cost of 2 systems ($15,000) under Energy Efficient Building Property, TurboTax kicks out $300 total credit.

Is this correct?

Am I not eligible for 2X$300= $600 ?

[ReneeM7122]

Yes, $300 total is correct.  While heat pumps that are ENERGY STAR certified meet the requirements for a $300 energy efficiency tax credit claimed on Form 5695,  the total amount is limited to $300, unfortunately.  It's not per unit and it's not for a residence other than primary, according to IRS instructions page 6 & 7.

[slowreader]

Those links don't work, sigh.

[DoninGA]

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@slowreader wrote:

Those links don't work, sigh.

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Links for what?  This thread is over three years old and with tax code changes any links posted could be no longer valid.

[bjbreining]

MareP is right. Earlier on the initial list electric heat pump wasn't included, and now it is. DOes this mean we will see another update that includes being able to enter the heat pump cost to see if a credit is available?

[DoninGA]

@bjbreining The IRS Form 5695 Residential Energy Credits for tax year 2023 has not been 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...