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You're correct. According to the Instructions for Form 5695 (2023):
For the energy efficient home improvement credit, the lifetime limitation has been replaced by an annual credit limit. A 30% credit, up to a maximum of $1,200, may be allowed for:
• Insulation material or air sealing material or systems,
• Exterior doors,
• Windows and skylights,
• Central air conditioners,
• Natural gas, propane or oil water heaters,
• Natural gas, propane or oil furnaces or hot water boilers,
• Improvements or replacement of panelboards, subpanelboards,
branch circuits or feeders, and
• Home energy audits
To enter home energy credit information in TurboTax Online:
Note that Form 5695, Residential Energy Credits, the form on which such expenses would be claimed for tax year 2023, hasn't yet been finalized in TurboTax. Once this is done, you’ll be able to complete the form using the updated computations.
The form is tentatively scheduled for use on February 7th, 2024. You can check for any updates in TurboTax's Tax form availability app.
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