How do collect tax credit for Energy Star water heater?

Question

In 2025, I had a gas water heater installed that qualifies for a rebate according to energystar.gov. However, there does not appear to be a way to include appliances like this in the clean energy costs section. The only water heater option is for solar. Is there a way to get this added, or am I trying to add it in the wrong section?

Taylor · Accepted Answer

Hello snazzysockfeet,

It sounds like you are close to locating this section, you may just have one more question to answer for the gas water heater option to appear.

First Select:
 Deductions & Credits > Home Energy Credit > Select Yes, to: 
 "Did you make energy efficiency improvements to your home in the United States during 2025?"

Next, click Edit to the right side of: Your Homes for the Energy Credit
 Click Edit on the Home Address for the Credit. And then scroll to the bottom where it asks: 
 "Did you make any 2025 heating, cooling, and electrical upgrades to this home?"
 Select Yes, and Save and Continue through this screen and the next.

The Heating / Cooling / Electrical Upgrades menu will then be added to the main Home Energy Credit menu. Scroll down to the Natural Gas, Propane, or Oil Water Heaters to click +Add.