topic Residential Clean Energy Improvements in Deductions & credits

Residential Clean Energy Improvements

topmiller — Sat, 28 Feb 2026 19:53:49 GMT

I put in costs to add solar panels to our roof and also install a heat pump water heater. It looks like only the solar panels are being used for the credit. Why is it not giving me a credit for the heat pump water heater? I have entered the QMID and the cost.

Re: Residential Clean Energy Improvements

Vanessa A — Sat, 28 Feb 2026 20:10:48 GMT

It is possible that you are not getting the credit for the heat pump due to a lack of tax liability. The heat pump water heater credit is part of the Energy Efficient Home Improvement Credit. This is a nonrefundable credit that cannot be carried forward. Which means it is a use it or lose it credit. So if you do not have a tax liability in the tax year you are filing for on line 16 of your form 1040 for it to offset, or you already have enough other non-refundable credits to offset it, you will not be able to claim this credit.

The solar credit on the other hand is able to be carried forward, so whether or not you have enough tax liability, you would be able to claim this credit if you other wise qualify for 2025. It is very possible that this credit wiped out your tax liability so you would not have any tax left to use for the heat pump.

Re: Residential Clean Energy Improvements

topmiller — Sat, 28 Feb 2026 20:15:48 GMT

Thank you for the reply. I have plenty of taxes owed on line 16 of 1040 form to cover the credit from both and more. Either Turbo Tax is not working correctly or I am not entering it correctly. Has anyone else entered a heat pump water heater? Who do I contact when for help?

Re: Residential Clean Energy Improvements

topmiller — Sat, 28 Feb 2026 21:24:20 GMT

I am looking at form 5695 line 29g has the cost of my heat pump hot water heater and line 29h says to multiply line 29g by 30% but it is hard coded as zero. Seems like a bug in Turbo Tax. Who do I contact?

Re: Residential Clean Energy Improvements

topmiller — Sat, 28 Feb 2026 22:30:29 GMT

I spent 30 minutes with Turbo Tax rep. He agreed it was a problem. He had me right click on 29h and manually change the value to 30% of line 29g.