Question

I have a question about claiming residential energy credit. Can I claim my new air conditioning / heating unit for a nonbusiness energy property credit?

Answer

Maybe. You might qualify for the nonbusiness energy property credit. This allows you to make improvements that increase the heating and cooling efficiency of your main home.

These improvements include:

  • Electric heat pump water heaters
  • Electric heat pumps
  • Natural gas, propane, or oil water heaters
  • Central air conditioners
  • Natural gas, propane, or oil water boilers
  • Natural gas, propane, or oil furnaces
  • Advanced main air-circulating fan used in a natural gas, propane, or oil furnace
  • Biomass fuel stoves

Manufacturer’s certification statements will tell you if your energy property qualifies. To learn more about the residential energy credit, visit www.energystar.gov.

You must have installed the property in a home you owned and used as your main home at the time of installation to be eligible for the nonbusiness energy property credit. The amount of the credit in 2017 is 10% of the cost. This includes installation and labor costs. You can claim up to a maximum of $500. Claim the credit on Form 5695.

Related Topics

Related Resources

Preparing Your Tax Document Checklist

If you are just getting your tax documents together and figuring out what to do next, here is a handy checklist to help you keep everything organized.

What Are H&R Block’s Prices?

Trying to determine the cost of tax preparation or H&R Block’s prices? Find out why there is no one-size-fits-all answer when it comes to tax prep.

Tax Myths—Busted! | H&R Block

When it comes to making everyday tax decisions, we find that there's a gap between what's true and what's rumored. Let's explore four common tax myths.

What Types of Tax Preparers Are There?

Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.