Can I claim 30% tax credit on non-geothermal heat pumps ? If so, how ? https://www.irs.gov/pub/taxpros/fs-2022-40.pdf

[ebove78]

according to the IRS fact sheet there does not seem to be a geothermal limitation on electric heat pumps, but on the form only the geothermal option is available.

[JohnB5677]

Yes, see Frequently asked questions about energy efficient home improvements

Heat pumps and biomass stoves and biomass boilers (30% of costs, including labor) satisfying the energy efficiency requirements in 

Q1 under the Energy Efficiency Requirements section:

•  electric or natural gas heat pump water heaters;
• electric or natural gas heat pumps; and 
• biomass stoves and biomass boilers.

To take advantage of the Energy Credit, go to:

1. Deductions & Credits
2. Scroll to Your Home
3. Select Home Energy Credits
4. Follow the interview.

If I've misunderstood your question, and this does not completely answer it, please contact us again and provide some additional details.

[ebove78]

hi John, thanks for your reply.

I followed the steps in the interview and yet there is nothing that allows me to claim tax credit for electric heat pumps that are not geothermal. This is the source of my confusion. I did read the document, I also posted the link, yet I can't seem to find the right place where to enter the value and reading the instruction for form 5695 didn't help. I'd appreciate any additional detail that you can provide.

[KrisD15]

Select "Energy-Efficient Building Property"

Click the Learn More link to see electric heat pumps listed there 

[ebove78]

Thanks Kris, that option is not allowing me to claim 30% of the cost including labor as it has built in limitations.

According to the IRS FAQ here: https://www.irs.gov/pub/taxpros/fs-2022-40.pdf page 2 last bullet point I should be able to claim 30% provided I meet the requirements (which I do).

"Heat pumps and biomass stoves and biomass boilers (30% of costs, including labor) satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section: o electric or natural gas heat pump water heaters; o electric or natural gas heat pumps; and o biomass stoves and biomass boilers."

Based on this I feel I should be able to claim my electric heat pump even if not geothermal, but the forms doesn't seem to agree.

[PattiF]

You would enter your expense in the section of the form shown below.

From the IRS Fact Sheet for Energy Credits:

You might not see any benefit on your tax return from the heat pump if you don't owe any taxes on your return.

@ebove78