Idaho Alternative Energy Device Credit

schestev — Wed, 11 Feb 2026 03:36:49 GMT

Filing state taxes for 2023.

We met the conditions and qualify for 40% of installed cost in the first year for an EPA Certified Wood Stove. When I fill in the Type of Device and Total Cost boxes in the desktop turbotax software, I'm only getting ~2% credit.

Can anyone tell me why or what I need to do to get the full 40% this year?

Re: Idaho Alternative Energy Device Credit

JohnW152 — Tue, 13 Feb 2024 21:45:40 GMT

You may be misinterpreting what this tax benefit does.

It's not a credit -- that is, it doesn't directly offset income tax.

Rather, it's an Idaho subtraction from your federal income. It'll be included in the Less: Idaho Subtractions line, as shown on the screen below:

If this doesn't address what you're seeing, provide more information so we can work through this.

What is the amount you entered for the device in 2023?
Did you enter any amounts for other years? If so, what amounts, for which years?
What's the amount of subtraction that resulted (see image above)?
What was your federal taxable income?

To enter your Alternative Energy Device information in TurboTax Online:

Open TurboTax Online
Select Tax Home in the left pane
On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select Start, Continue, or Review/Edit
In the left pane, select Prepare State
Proceed through the screens until you come to the Status of your state returns screen
Select Start, Continue or Edit to the right of Idaho. If no state is shown, select + Add another state
Proceed through the state screens until you get to the Alternative Energy Device screen. Select Yes, then select Continue
On the next screen, enter the required information, then select Continue

Re: Idaho Alternative Energy Device Credit

schestev — Tue, 13 Feb 2024 22:16:22 GMT

I think I see the problem.

I thought the 40% "credit" was a dollar-to-dollar tax liability reduction. It is not.

It gets included in the wizardly calculations to reduce the taxable income.

Thank you for your assistance.

topic Idaho Alternative Energy Device Credit in State tax filing

Idaho Alternative Energy Device Credit

Re: Idaho Alternative Energy Device Credit

Re: Idaho Alternative Energy Device Credit