@cl080141 Please read the following Turbo Tax post written by a staff of tax professionals. A Seismic retrofit is not eligible for a federal energy credit. It does not fit in with the energy classification criteria listed in the post.
There also not a state credit offered either. According to this unofficial source, you could have applied for a grant to receive $3000 grant through Earthquake Brace + Bolt (EBB), a program jointly administered by the California Earthquake Authority (CEA) and the California Governor’s Office of Emergency Services. The grants help offset the cost of seismic retrofits that brace the cripple walls of older homes, when present, and bolt houses to their foundations, making them less vulnerable to earthquake damage. Unfortunately, this offer was only valid from 10/27-12/01 2021 to apply for the grant.
As far as the advice about reporting on a Schedule 540, this is only if you received this grant from the State of California and you wanted to offset this income with a subtraction. If you did not receive a grant, there is nothing to report in this schedule.
About the best thing you can do is follow the tax advice offered by MaryK1101 and JohnW152 and add this as a basis to your home.
[ Edited 02/25/22|04:50 PM PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
