Question

Residential Energy Credit

Forum|Forum|6 years ago
March 12, 2020
1 reply
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In 2018, we installed solar panels and received a Residential Energy Efficient Property Credit of $6,300.00 (Form 5695, line 15). Nothing was entered on line 30 of the same form.

In 2019, we installed a heat pump water heater for $4,355 (cost reduced by the rebate).

1) Is the Residential Energy Efficient Property Credit the same as the Home Energy Credit in Prior Years but I don't need to enter it because it was on line 15 and not line 30? and 2) Should I enter the $4,355 as an Energy-Efficient Building Property, or Solar Water Heating Costs?

Thank you.

B

BillM223

The Residential Energy Efficient Property Credit (page 1 of form 5695) is quite different from the Nonbusiness Energy Property Credit (page 2 of form 5695).

The solar panels belong to the Residential Energy Efficient Property Credit, but the heat pump belongs to the Nonbusiness Energy Property Credit - see the Instructions for the 5695.

As for your questions:

1. I am not sure there was ever a "Home Energy Credit", rather this was colloquialism for the two credits above - in any case, there is no such credit now. Your solar expenses in 2018 were correctly entered.

2. The heat pump - assuming it had nothing to do with solar - should be entered as an Energy-Efficient Building Property (well, for the Nonbusiness Energy Property Credit).

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