2023 Form 5695, are Residential Energy Credits for new construction allowed? TT says yes...

[mixuala]

2023 IRS Form 5695 Part II Section A 17e says the following:

'If you checked the “Yes” box, you can only claim the energy efficient home improvement credit for
qualifying improvements that were not related to the construction of the home. Do not include expenses
related to the construction of your main home, even if the improvements were made after you moved
into the home.'

However, when I when through the TT Deluxe Easy Step –– Home Energy Credits, it allowed me to enter values for Part II Section B, e.g. costs for electric heat pumps.

It's unclear whether the energy efficient home improvement credit excludes new construction ONLY in "Part II Section A—Qualified Energy Efficiency Improvements", or ALSO in "Part II Section B—Residential Energy Property Expenditures". IRS Fact Sheet 2022-40 excludes new construction for "Energy Efficient Home Improvement Credit" , which seems to include Part II Section A and B   (see: https://www.irs.gov/pub/taxpros/fs-2022–40.pdf):

Q2. Can a taxpayer claim the credits for expenditures incurred for an existing home? What about a newly constructed home? (added December 22, 2022)
A2. The rules vary by credit.
• Under the Energy Efficient Home Improvement Credit: a taxpayer can claim the credit only for qualifying expenditures incurred for an existing home, and not for a newly constructed home.

Can I get a tax credit for the cost of heat pumps installed in new construction?

[Vanessa A]

Yes, you can get the credit for the cost of the heat pump, as long as it meets the energy efficient standards, on a new construction.  You cannot get the credit for building envelope items (doors, windows, insulation), but you can for the residential energy property items. 

Notice the rule for the residential energy property is a home that you used.  This means, if you moved into it you can.  If you did not move into the home in 2023, then you would not be able to claim the credit as you did not use the home in 2023. 

"Residential energy property costs are costs of new qualified energy property that is installed on or in connection with a home that you used during 2023 located in the United States"  Instructions for 5695