Residential Energy Efficiency Tax Credit - Panel

Forum|Forum|3 years ago
February 4, 2023
1 reply
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Hello,

I've seen a list of the eligible improvements and equipment eligible for this credit. However, there is a line in the section under "Property placed in service after 12/31/2022" that mentions that "Any improvement to or replacement of a panelboard, sub-panelboard, branch circuits, or feeders which is installed in accordance with the National Electric Code, has a load capacity of not less than 200 amps, is installed in conjunction with any qualified energy efficiency improvement"

Does this in-conjunction qualified energy efficiency improvement have to be made during the same tax year to be eligible? So, I want a qualified Central Air Conditioner but it's determined that I need to upgrade my panel from 120 amp to 200 amps first. If I choose to do the panel upgrade in calendar year 2023 but then do the central airconditioner installation in 2024, can I still claim the panel-upgrade in my 2023 tax year, even if I haven't technically done the AC upgrade yet? Or do I have to do the panel upgrade AND the qualified AC improvement in the same tax year to claim the credit?

JohnB5677

Yes, you can take the credit for the panel in 2023, and for the air conditioner in 2024. There are limits on the amounts that can be taken, and they carry from year to year.

Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which:

is installed in a manner consistent with the National Electric Code,
has a load capacity of not less than 200 amps,
is installed in conjunction with, and enables the installation and use of:
- any qualified energy efficiency improvements, or
- any qualified energy property (heat pump water heater, heat pump, central air conditioner, water heater, furnace or hot water boiler, biomass stove or boiler)

Electric Panel Upgrade Tax Credit

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footballgames101Author

Thanks JohnB5677.

It's reassuring to know that "is installed in conjunction with, and enables the installation and use of" clause does not have to be done during the same tax year. I could not find that explained anywhere in my searching so thank you so much for letting me know, this will really help my 2023 and subsequently my 2024 budget plans.