Do I need to own my house to qualify for Energystar tax credits?

spencerrein-ke

I live in an old house that is owned by a family member. I had purchased a new electric boiler and had it installed in 2024. Although I do not own the house, I currently live in it and it is regarded as my permanent residence. Would I still be able to qualify for a tax credit?

RustyL

Great question!

Some parts of the home energy credit are available exclusively for homes that are owned by the principal resident, but there are portions of the credit that are available without ownership of the home, though it must always be your principal residence.

According to the IRS website, "A taxpayer claiming the credit for exterior windows or skylights, exterior doors, and insulation materials or systems (including air sealing materials or systems) must have installed such property in a home located in the United States that is owned and used by the taxpayer as the taxpayer’s principal residence."

However, "A taxpayer claiming the credit for electric or natural gas heat pump water heaters; electric or natural gas heat pumps; central air conditioners; natural gas, propane, or oil water heaters; natural gas, propane, or oil furnaces or hot water boilers; biomass stoves or boilers; oil furnaces or hot water boilers; and improvements to, or replacements of, panelboards, sub-panelboards, branch circuits, or feeders must have installed such property in a home located in the United States and used as a residence by the taxpayer. In this case, the taxpayer may rent the home in which such property is installed, and such property may be installed in the taxpayer’s second home."

Check out this IRS FAQ for more details.

If your boiler matches any of the appliances listed in the second quote you would be able to claim the credit even though you don't own the home.