Will we be able to use the purchase of a new energy efficient ac/heat pump as a credit for our taxes

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Lisakinney66
Lisakinney66 Member Posts: 1 Newcomer

Will we be able to use the purchase of a new energy efficient ac/heat pump as a credit for our taxes when we file?

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  • mikrause
    mikrause Member Posts: 1 Level 2
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    I believe there are specific criteria that the equipment must satisfy, but as a general principle, yes. We installed a geothermal system in 2022 and received enough of a credit that some of it carries over into 2023. But our liability was low in the first place.

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 247
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    Hi Lisakinney66,

    In my experience over the years, the home energy credit changes from year to year. What qualified a couple years ago, may not qualify next year.

    Mikrause mentioned they installed a Geothermal system and the credit carried over to the next year, since they could not use it all. A Geothermal system uses the earth to collect heat from. If you have a heat pump heater/AC system that uses the air to capture heat, that doesn't qualify under the same type of property. However, it may qualify for a credit as a Residential Energy Property. See the IRS page for more information and review "Residential Energy Property".

    The 2023 software will be available in a couple weeks, and you can review the Home Energy Section.