@bratman wrote:
How can we answer line 18 and not be disqualified?
You are confusing two different credits.
Section 25D Residential Clean Energy Credit covers solar power, geothermal, and wind energy, basically, energy generation. This credit is on page 1 of form 5695. It has no lifetime limitations.
Section 25C, Energy Efficient Home Improvement Credit, covers energy efficient improvements including insulation, doors, windows, and specified energy property. Energy property includes heat pumps, hot water heaters, furnaces and air conditioners. These credits are on page 2 of form 5695. For tax year 2022, there is a $500 lifetime limit on all section 25C credits per taxpayer, no matter what house they were installed in. Starting in 2023, the $500 lifetime limit is removed and replaced with a $1200 annual limit.
If you made section 25C energy efficient improvements in 2022, you must enter the amount of any prior section 25C credits, and that may reduce or eliminate any credit you could claim for 2022.
