in order to get a rebate or tax credit under the inflation reduction act, do i have to live in the house for the entire year? do i have to continue living there until i file taxes the following year? e.g. if i move into a house on december 1st, install a heat pump on december 15th then move out on december 30th, would i qualify? what if i moved in during december of 2022, installed the heat pump in june of 2023, then moved out in february of 2024?
Very thorough request of several hypothetical situations @anontmous17,
1. If you buy a home, live in it and own it for 2 of 5 years, you get a $250,000 credit on the gain from the sale. $500,000 if you file married filing jointly. This is the biggest credit available and you can claim it every 2 years.
Before the Inflation Reduction Act, people were allowed a credit up to 10% of the amount paid for nonbusiness energy property, such as windows, doors, and skylights, and the amount of residential energy property placed in service before Jan. 1, 2022. Now, taxpayers may take the credit at an increased amount up to 30% if they placed the property in service before January 1, 2033.
The provision also eliminates the lifetime credit limit that was previously in place and limits the credit per taxpayer per year.
2. The credit is for expenses paid during that tax year on your primary home. That isn't definite but has been used on all other residential energy credits, so a fairly safe bet.
3. Now, taxpayers may take the credit at an increased amount up to 30% if they placed the property in service before January 1, 2033.
thanks for that background info, but i'm not sure it addressed my question for a couple reasons:
1. i asked "rebates" and "heat pump" specifically because it's one of the improvements specifically called out in the bill. notably, it's eligible for a 8k$ rebate, which is pro-rated based on income. additionally, there is a separate 2k$ tax credit for people whose income is to high to claim the rebates. i don't think the smaller 30% general "energy efficiency" provision applies when you use these rebates, although i could be wrong.
2. i asked if you have to own the house for the whole year. this is really the core of my question as per the subject line. i don't think that question is addressed in any of the links you provided. specifically, it's not clear if 1. you have to own the house or 2. for the whole year