IRS publication 5886-A confirms what your contractor told you. Turbotax hasn't updated their software to reflect 2023 tax law yet. Also see https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
I installed a super high efficiency water heater and couldn't figure out why the program kept filling in $50 for a water boiler or $300 for the efficient water heater.
This is extremely frustrating not being able to get an accurate tax amount on January 15 when the last estimated tax installment is due tomorrow.
