Skip to main content
March 9, 2021
Question

energy credit

  • March 9, 2021
  • 1 reply
  • 0 views

I sold my home and split the cost with the new owners for new energy rated doors and windows.  Can I deduct my portion of the cost?

    1 reply

    DawnC
    Employee
    March 9, 2021

    If you made energy-efficient improvements to your homes like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for the energy-efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.

     

    You can enter them in the Deductions & Credits section:

    1. Open or continue your return, if you don't already have it open.
    2. In TurboTax, search for energy improvements. (Don't search for energy credit as this will take you to the wrong place.)
    3. Click the Jump to link in the search results.
    4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes and continue. Follow the instructions.
      1. Page 1 of the interview covers solar, geothermal, wind, and fuel cell. If you're looking for other improvements, like doors, windows, furnaces, air conditioning, or heat pump, just keep going to the next page

    Details of the Nonbusiness Energy Property Credit (Extended through December 31, 2021)

    You can claim a tax credit for 10% of the cost of qualified energy improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

    • A maximum of $200 can be for windows.
    • The maximum tax credit for a furnace circulating fan is $50.
    • The maximum credit for a furnace or boiler is $150.
    • The maximum credit for any other single residential energy property cost is $300.
    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"