Question

Loan Program

Forum|Forum|5 years ago
March 1, 2021
1 reply
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My husband and I received the City of Appleton Rehabilitation Loan, which summed up is a loan that you apply for and can get for making improvements to your home that will make it more 'energy efficient' basically. It's not for aesthetic purposes, such as just putting on siding b/c you want to change the color or put in AC b/c you don't have it. It's purpose is to update things such as an old water heater to an energy star one or a furnace that is 30 years old(if it's still working) so basically making improvements that will help your home save money in the long run & "run more efficiently". The 'catch' is that you don't technically have to pay it back as long as your house doesn't get foreclosed on, you stay in it for 15 years & things like that. So it is a loan but we aren't 'really' paying on, per say.(if this doesn't make total sense you can look at the city of Appleton, WI website.

In short we qualified for this & got new windows (safety windows put into the basement), doors, attic insulation put in, a newer water heater & some updated plumbing.

My question for you is would we be able to claim the windows and insulation on our taxes as part of the Energy Home improvement deduction.

Thank you.

Not A Product Question

M

MAK70

You would be able to claim the Home Energy Home Improvement deduction (Non-Business Energy Property Tax Credits) if the amounts of the Rehab Loan that you do not pay back in the future is included as income in the year the loan is forgiven (which is many years later).

To be safe I would not include any amounts you used the loan proceeds for the credit.