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MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Question concerning the Federal Energy Tax Credit IRS Form

Resolved Question:

Question concerning the Federal Energy Tax Credit: IRS Form 5695. I installed a Geothermal Heat Pump in my home which is elegible for the 30% (no cap) tax credit. My problem is I have a 2 Zone Heating and cooling system in my home and plan to replace the second HVAC system in my home next year so both units will then be geothermal heat pumps. Can I take the Tax credit one time for each unit? The credit is decribed as a "one time tax credit" which I take to mean you can't deduct for the same credit twice on the same piece of equipment. If I have 2 pieces of equipment, installed in two seperate tax periods, can I then take the deduction twice?
Submitted: 5 years ago.
Category: Tax
Expert:  MequonCPA replied 5 years ago.
Dear bnbspo12-

Your understanding is correct. There are some credits that provide benefits for multiple years, this is not one of them. However, this credit is available for installations from 2009 - 2016. You should be able to take the credit for both units as both units are necessary for purposes of heating your residence. Additionally there is no cap on the total amount credit that can be taken over the term of the credit.
Customer: replied 5 years ago.
Excellent, just what I thought. one more quick question if I may; Do you think taking this credit in more than one tax year as I stated above would increase my chances of being audited?
Expert:  MequonCPA replied 5 years ago.
Dear bnbspo12 -

It is always possible that you will receive correspondence from the IRS regarding this particular item. If selected, it may be limited to the credit or could include other aspects of the return depending on the IRS audit parameters.
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