Dear Turbotax Community
A client of mine included a Manufacturers Certificate for a hearth product (Fireplace) eligible for a Tax Credit with his tax workpapers. The cost of the entire Fireplace installation including parts and labor was $7,194 and the Manufacturers Certificate stated that the Fireplace is eligible for the energy credit as a biomass burning stove for purposes of Section 25C of the Internal Revenue Code. When I entered the applicable information in Turbotax, it calculated an energy credit of $2,158 (30%) on Form 5695 which carried forward to Form 1040 at that amount.
I have a few questions relating to this credit- my reading on the topic seemed to indicate that the credit was 26% for 2022 and was not increased to 30% until 2023. Also, I was under the impression that Residential Energy Credits were non-refundable but the $2,158 credit on the Return above increased the refund that was already present on the Return prior to the credit.
Thanks
