Tax credit for panel upgrade

Forum|Forum|2 years ago
February 7, 2024
2 replies
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Hello,

I am planning to get my electrical panel upgraded from 100 amps to 200 amps. Its costing me $4000. I have two questions-

1. If I only get the panel upgraded in accordance with the safety codes etc, does that make me eligible for any type of tax credit without getting any other work done like solar etc.?

[IF YES] Where can I enter it in the turbotax platform and how much federal and state (CA) tax credit do I get?

[IF NO] Then I suppose I will have to pair it with any other improvements like solar or EV charging. In that case, can I get the panel upgraded now and solar done later this year or next year?

Do they also have to be with the same contractor in one invoice or can I have two separate invoices?

Ask the Experts - MetLife II - Feb 2024

DawnC

Level 15

Unfortunately, no credit available on its own. You can have multiple invoices.

Solar Expenses

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swarnim777Author

Level 2

Appreciate the answer and link. However, I would be thankful if you take a look at the full question. Let me write it again-

For only the panel, I see that EnergyStar shares the following which is contradictory to what you mentioned.

https://www.energystar.gov/about/federal_tax_credits/electric_panel_upgrade

If the above is not applicable, then I suppose I will have to pair it with any other improvements like solar or EV charging. In that case, can I get the panel upgraded now and solar done later this year or next year?

Do they also have to be with the same contractor in one invoice or can I have two separate invoices?

DawnC

Level 15

Yes, you're right, the panel is eligible for the Residential Clean Energy Credit. Where do I enter the credit in TurboTax?

Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032. A broad selection of ENERGY STAR certified equipment is eligible for the tax credits. Under the Residential Clean Energy Credit, you can get a federal tax credit for installing alternative energy equipment such as:

Solar electric property
Solar water heaters
Geothermal heat pumps
Small wind turbines
Fuel cell property

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paul1701

Level 2

I cannot address CA state question but can tell you about Federal form 5695. If you are doing panelboard upgrade in 2024 then you cannot take credit in your 2023 filing. I am not a professional auditor or accountant, just informing you of what I have figured out. Electric panelboard upgrade (to minimum of 200A) costs can be entered on line 25A of form 5695. I went to the form as I did not initially see it in the dialog. But Turbotax software is always updating so it may be more apparent now on the dialog for energy credit. Credit for panelboard upgrade max's out at $600 but put your full cost on line 25A. I did panelboard upgrade in 2023 and heat pump install in 2024. I will take energy credit for latter in next year filing.