Energy Efficient tax credit

[EDESP]

Client purchased a SPLIT HMH7 Gas system 17.0 SEER with a variable capacity inverter heat pump AND single stage multi speed ECM 80% gas furnace.  I completed form for $600 tax credit but they are wondering why they don't get a credit for the furnace too.  It was one invoice, one bill, one system. Thoughts?

[Jim-from-Ohio]

did you split the total among the two categories on the 5695

[EDESP]

Jim, thank you for your prompt reply.  NO I did not because the installer provided one invoice for the one system with one total.  It was one system (just called a split system). Thoughts?  I've never had this question before!!

[Jim-from-Ohio · Accepted solution]

has to be split on the 5695.. you can amend the return.. i have seen almost exact same thing.. client brings in receipt.. covers AC unit AND furnance.. just get the allocation of purchase price and amend. 

[EDESP]

Thank you!

[TaxGuyBill]

---

@EDESP wrote:

Client purchased ... heat pump

AND single stage multi speed ECM 80% gas furnace. 

I completed form for $600 tax credit

---

Have you verified the Heat Pump qualifies for the credit?

An 80% gas furnace does NOT qualify for the credit.  For 2023, gas furnaces need to be at least 97% efficient to qualify for the credit.

$600?  Is this a 2023 tax return?  You may be entering the Heat Pump in the wrong spot.  The credit for an electric heat pump is 30%, up to $2000 (not $600).