Is a certified high efficient mini split installed in one room of an existing owner occupied house eligible for residential energy rebate?

Forum|Forum|1 year ago
June 17, 2024
2 replies
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Unit is certified for the federal credit. This will be in an existing 3 season room.

TurboTax Online

Best answer by JotikaT2

As long as the improvement falls under one of the categories listed in this link, meets the requirements for the residential clean energy credit, and is installed on your primary or secondary residence where you spend a substantial amount of time during the year, you should be able to take the applicable home energy credit.

As far as records, you should retain all supporting documents with your tax return. If the IRS requests support for your credit, they will send you a letter requesting additional support. Please see the following link for additional information.

What is the IRS Form 5695?

@tompass1

AmeliesUncle

Can you clarify your question? You said it was certified for the federal credit, yet at the same time you seem to be asking if it qualifies for the federal credit???

tompass1Author

Equipment is certified for the credit but system will be installed only in one room, sun room, and a whole house system. I would use form 5695 on Turbotax but would I need to support with documentation or only if audited?

JotikaT2Answer

What is the IRS Form 5695?

@tompass1

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Opus 17

Employee

No. Qualifying property is a "central air conditioner." See section 25C

https://www.law.cornell.edu/uscode/text/26/25C

Even if the mini split is Energy Star rated, it is not eligible for the section 25C credit on form 5695.

See also the instructions for form 5695,

Line 22a

Enter the amounts you paid for central air conditioners that achieve the highest efficiency tier that has been established by the Consortium for Energy Efficiency (CEE) that is in effect as of the beginning of the calendar year in which the property is placed in service.

Don't enter more than $600 on line 22b.

tompass1Author

Thanks for the response be but advised not an air conditioner. This would be and is considered to be a heat pump that meets Seer requriements. As such should be eligible for the the $2000 credit. Your thoughts?

Opus 17

Employee

@tompass1 wrote:

Thanks for the response be but advised not an air conditioner. This would be and is considered to be a heat pump that meets Seer requriements. As such should be eligible for the the $2000 credit. Your thoughts?

OK, my misunderstanding. There is no requirement in section 25C that a heat pump serve the entire house.

For property installed in 2024, the unit must meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of January 2024. So your unit must be listed on the CEE web site.

https://cee1.org/index.php/program-resources/tiers-and-energy-star/