Question

During 2022, Amelia made energy-saving upgrades to her home, which is her main home. She purchased a qualified solar water heater for $3,000, and a special geothermal heat pump to heat her home during the cold months for $2,200. Her tax on Form 1040, line 16 is $4,125. What would be Amelia's Residential Clean Energy Credit for 2022?

Answer 1

Amelia's Residential Clean Energy Credit for 2022 would be $1560.

Step-by-step explanation:

To calculate Amelia's Residential Clean Energy Credit for 2022, we need to determine the eligible expenses for the credit. The credit is equal to 30% of the cost of qualified solar water heaters and geothermal heat pumps.

Amelia's eligible expenses for the solar water heater would be $3,000 x 30% = $900. Her eligible expenses for the geothermal heat pump would be $2,200 x 30% = $660.

Therefore, Amelia's Residential Clean Energy Credit for 2022 would be $900 + $660 = $1560.