Where can I enter $300 tax credits for a Gas Water Heater purchased in 2022? In TurboTax, I only see furnaces and hot water boilers where the tax credit is $150

[djlee915]

In 2022, non-solar water heaters (gas, oil, or propane) quality for $300 tax credit. But I don't see a field for this in TurboTax. I only see "Furnaces and hot water boilers powered by natural gas, propane or oil" which caps the credit to $150 but is not the same as a water heater.

[KrisD15 · Accepted solution]

Be sure to enter it as "Energy-Efficient Building Property"

Water Heaters can be worth a $300 credit. 

[Opus 17]

The credit is not $300.  The credit is 10% of the price, up to $300.  You can include installation costs in the total cost.  Also, for 2022, the overall section 25C credit has a $500 lifetime limit, so if you claimed this credit in the past, your credit now may be reduced or eliminated. 

[mjconcannon73]

When/where is the update for this for the 2023 year software?  We bought a heat pump water heater, which at total project cost of $3600 should be $1080 credit,  not $300 which is still showing. 

This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.

You can claim:

30%

of project cost, $2,000 maximum amount credited

Annual Limits on Energy Efficient Home Improvement Tax Credits

In addition to limits on the amount of credit you can claim for any particular equipment installation or home improvement, there are annual aggregate limits.  The overall total limit for an efficiency tax credit in one year is $3,200.  This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners.  Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000.

[DoninGA]

@mjconcannon73 The IRS Form 5695 Residential Energy Credits for tax year 2023 has not been finalized in TurboTax.

The Form 5695 is scheduled to be available on 01/10/2024

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...