FORM 5695 CREDIT FOR SMART INDUCTION COOKTOP, WHERE DO I ENTER IT IN LACERTE?

[EarlineLaBuy]

 CLIENT INSTALLED A SMART INDUCTION TOUCH CONTROL COOKTOP.  IT QUALIFIES FOR A $1200 ENERGY CREDIT AND HAS A QMID #. I AM STRUGGLING WITH WHERE TO ENTER IT IN LACERTE. HELP!

[Accountant-Man]

Why do you think it goes on the 5695?

"Smart induction cooktops may qualify for federal incentives under the Inflation Reduction Act, primarily through state-administered rebates rather than a direct tax credit."

"While they do not directly qualify for the 25C federal energy tax credit, associated electrical panel upgrades for installation may qualify for up to $4,000."

[EarlineLaBuy]

Both IRS & AI say it qualifies for a $1200 credit. I just don't know how or where to enter it. It also has a QMID #.

[EarlineLaBuy]

Also, it is part of the I.R,A, inflation reduction act, bill that was passed under President Biden.

[IRonMaN]

Believe it or not, AI is not always right.  As far as what the IRS says, reread what Accountant Man posted.

[TaxGuyBill]

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@EarlineLaBuy wrote:

Both IRS ... say it qualifies for a $1200 credit.

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Where are you seeing that from the IRS (or where the Inflation Reduction Act gives a tax credit for that)?

[qbteachmt]

Appliances, particularly meeting Energy Star specifications, might qualify for State or provider credits. A GE induction stove would qualify for a rebate from GE as well as from the local electric utility, for example. This would be stovetop, range, refrigerator, clothes washer/dryer, dishwasher. A water system might offer a rebate for an automatic system controller installation with a rain sensor. 

For Feds, you need to go to the source. IRS, not AI and not the manufacturer.

There are two types of Fed credits: Energy efficient home improvements and residential energy property. There's a generating equipment credits as well, such as solar, but you aren't working on this.

Energy efficient home improvements and property would be: 

• Exterior doors, windows, skylights and insulation materials
• Central air conditioners
• Biomass stoves and boilers
• Home energy audits
• Natural gas, propane or oil water heaters
• Natural gas, propane or oil furnaces
• Hot water boilers
• Electric or natural gas heat pumps
• Electric or natural gas heat pump water heaters

You mentioned $1,200. From the IRS...The maximum credit you can claim each year is:

• $1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150)
• $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers

Here are a couple of links:

https://www.irs.gov/credits-and-deductions-under-the-inflation-reduction-act-of-2022

https://www.irs.gov/credits-deductions/home-energy-tax-credits

[Accountant-Man]

I got the response I posted from Google. Since it mentioned IRC Sec. 25C, I'll go with my response.

You need to get a rebate from the state or the manufacturer. It won't come from the US government.