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bisenhower
Level 1

Tax Credit

Can I take a tax credit for getting my crawl space encapsulated?

4 Replies
xmasbaby0
Level 15

Tax Credit

No.   Home improvements to your own home are not deductible.  Save your records for someday when you sell the house.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
bisenhower
Level 1

Tax Credit

I was told that the stimulus package that was recently approved extended the energy home improvement tax credit through 2021.  Can this be verified? 

DoninGA
Level 15

Tax Credit


@bisenhower wrote:

I was told that the stimulus package that was recently approved extended the energy home improvement tax credit through 2021.  Can this be verified? 


The IRS Form 5695 instructions have not yet been finalized for tax year 2020.  They should be available on 01/21/2021

IRS Form 5695, Residential Energy Credits for 2020 (Draft) -

Nonbusiness Energy Property Credit
(Part II)
You may be able to take a credit equal to the sum of:
1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2020, and
2. Any residential energy property costs paid or incurred in 2020.
However, this credit is limited as follows.
• A total combined credit limit of $500 for all tax years after 2005.
• A combined credit limit of $200 for windows for all tax years after 2005.
• A credit limit for residential energy property costs for 2020 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.

Opus 17
Level 15

Tax Credit

For a crawlspace encapsulation, the only part of the work that will qualify for a tax credit is the actual cost of the insulating materials. You cannot take a credit for the cost of installation, and if you were audited, you will need to be able to show an itemized statement from your contractor showing the actual cost of the insulation materials.  The tax credit is 10% of the cost of the installation materials, up to a lifetime maximum of $500, so if you have ever claimed the insulation materials credit before, you will need your prior tax records so that you can determine the amount you are eligible to claim this year.

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