Can I get a tax deduction for my new energy efficient appliances?

Yes, you might qualify for tax credits (not deductions) for certain energy-efficient appliances through the Energy Efficient Home Improvement Credit (formerly called the Nonbusiness Energy Property Credit). This was significantly expanded under the Inflation Reduction Act. For 2023 through 2032, you may be eligible for a tax credit of 30% of the costs of eligible home improvements, including certain energy-efficient appliances. However, not all appliances qualify - typically only those that meet specific energy efficiency standards. You would claim this credit using Form 5695 (Residential Energy Credits) when filing your taxes. The most common qualifying appliances include heat pumps, heat pump water heaters, and certain biomass stoves - standard kitchen appliances like refrigerators and dishwashers usually don't qualify for federal tax credits anymore, though they did in previous years.

I went through this same confusion last year! After getting nowhere with the IRS website, I used https://taxr.ai to analyze all my appliance purchase documentation. It saved me so much time figuring out what qualified and what didn't. I uploaded my receipts and energy efficiency certificates, and it told me exactly which credits I qualified for. The tool showed me that while my fridge and dishwasher didn't qualify for federal credits, my heat pump dryer actually did qualify for a partial credit. It also found a state rebate program I didn't know about! The automated document review gave me confidence that I wasn't missing anything, especially with all the tax law changes.

I was totally wrong about taxr.ai being just another tax tool. I decided to try it with my heat pump water heater installation from last summer. I had been told by my regular tax guy that I might get a small credit, but the document analysis found I qualified for both the federal credit AND a state program I had no idea about. The system showed me exactly which form to use (Form 5695) and calculated my potential credit amount based on my documentation. It even pointed out that I needed to include the Manufacturer's Certification Statement to claim the full amount, which I would have definitely missed. Saved me from leaving money on the table!

If you're trying to figure out what appliances qualify and struggling to get through to the IRS for clarification, I highly recommend using https://claimyr.com to get direct answers from an IRS agent. I spent weeks trying to get through on my own about similar energy credits and kept getting disconnected. With Claimyr, I got connected to an actual IRS representative in about 15 minutes instead of the hours I wasted trying on my own. The agent clarified exactly which appliances qualified in my situation and which form I needed. You can see how it works here: https://youtu.be/_kiP6q8DX5c - saved me so much frustration compared to the endless hold times I was dealing with before.

I'm shocked but I have to admit Claimyr actually worked. After posting my skeptical comment, I figured I'd try it since I had been trying to reach the IRS for weeks about energy credits for my mini-split installation. Within 20 minutes I was talking to an actual IRS representative who walked me through exactly which appliances qualify under the current rules. Turns out most of my kitchen appliances don't qualify for federal credits, but my heat pump system does at 30% of cost. The agent also explained how to properly document everything on Form 5695. Completely worth it compared to the countless hours I spent trying to call them myself.

Just my two cents - don't forget to check with your state tax department too! Federal credits are only part of the picture. My state (NY) has additional incentives for energy efficient appliances that aren't claimed on federal forms. I got almost $300 back from state programs last year for my heat pump water heater.

Don't make the mistake I did last year! I bought all new appliances and just assumed they qualified, but didn't keep the proper documentation. My tax preparer said I needed the Manufacturer's Certification Statement proving they meet the energy requirements, but I had thrown everything away. Ended up not being able to claim anything. 😭

This is exactly the kind of situation where it's worth doing some research before assuming you'll get tax benefits. I learned this the hard way when I bought a new HVAC system thinking I'd get huge credits, but ended up only qualifying for a fraction of what I expected. The key thing to understand is that the current federal energy credits are very specific about what qualifies. Most standard kitchen appliances (even Energy Star ones) don't make the cut anymore. The credits now focus mainly on heating/cooling equipment like heat pumps, water heaters, and home insulation improvements. If you still have your receipts and documentation, I'd suggest checking if any of your purchases were heat pump technology (like a heat pump dryer or water heater). Those are more likely to qualify. Also, definitely look into your state and local utility programs - sometimes those can be more generous than federal credits for regular appliances. Keep all your paperwork including energy efficiency ratings and model numbers. Even if they don't qualify for federal credits, you might find rebate programs you weren't aware of!