Upgraded hvac and water heater to a high-efficiency units

[Jae775]

Upgraded my HVAC and water heater to a high efficiency units this year 2024 and was told that I would get a tax credit for doing so. What information do I need to have for when I need to do my taxes? Also how would I go about entering that information if I do my taxes myself with turbo tax?

thank you!

[marctu]

Most of this information comes from here:  Air Source Heat Pumps Tax Credit 

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

2032.   Heat pumps are either ducted or non-ducted (mini-splits).  Eligibility depends on whether you live in the north or south. 

If the system is ducted the eligibility is as follows;

South: All heat pumps that have earned the ENERGY STAR label

North: Heat pumps designated as ENERGY STAR Cold Climate that have an EER2 ≥ 10

For the ductless look at the map on the page.

For the hot water heater see this: Water Heaters (Natural Gas) Tax Credit or this: Heat Pump Water Heaters Tax Credit 

To find this in Turbo Tax follow these steps found here: How do I add or remove Form 5695? 

Thank you for the question @Jae775 

All the best,

Marc T.

TurboTax Live Tax Expert