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2023 New home construction Energy Credit

I purchased a new home construction (as main residence) in 2023 which includes solar system built into the price of the property. The builder gave me the cost of the system. How do I put the cost of the solar system to claim Home Energy Credit?

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1 Best answer

Accepted Solutions
JulieS
Expert Alumni

2023 New home construction Energy Credit

Yes, you can claim the cost of a solar power system installed in your new home.

 

Here's how to do that in TurboTax Online:

 

  1. Open your return.
  2. Select Deductions & Credits, then select Start or Edit to the right of Home Energy Credits. 
  3. Answer the questions on the next few screens according to your situation.
  4. When you answer Yes, to Were any of these improvements related to the construction of your main home? you'll get a message that only certain improvements qualify, select Continue. 
  5. Enter your costs in the box next to Solar Electric costs. If you have any questions about what to include, select Learn More on the screen for extra help. 
  6. Continue through the remaining questions in the section. 
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4 Replies
JulieS
Expert Alumni

2023 New home construction Energy Credit

Yes, you can claim the cost of a solar power system installed in your new home.

 

Here's how to do that in TurboTax Online:

 

  1. Open your return.
  2. Select Deductions & Credits, then select Start or Edit to the right of Home Energy Credits. 
  3. Answer the questions on the next few screens according to your situation.
  4. When you answer Yes, to Were any of these improvements related to the construction of your main home? you'll get a message that only certain improvements qualify, select Continue. 
  5. Enter your costs in the box next to Solar Electric costs. If you have any questions about what to include, select Learn More on the screen for extra help. 
  6. Continue through the remaining questions in the section. 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

2023 New home construction Energy Credit

Hi Julie,  Thanks much.

I followed the steps you outlined but the return got rejected with the following message:

 

F5695-036 - If Form 5695, 'HomeLocatedInUSAInd' or 'OriginalUserInd' or 'FiveYearUseExpectationInd' have a choice of "No" indicated, then 'HomeAddress' must not have a value.
F5695-007-04 - If Form 5695, 'HomeAddress' has a value, then 'HomeLocatedInUSAInd' and 'OriginalUserInd' and 'FiveYearUseExpectationInd' must have a choice of "Yes" indicated.

 

Earlier, about 3 weeks ago, I got a message that this Form needs updating by Intuit. Is that complete already? or am I doing something wrong?

2023 New home construction Energy Credit

@JulieS 

Hi Julie,  Thanks much.

I followed the steps you outlined but the return got rejected with the following message:

 

F5695-036 - If Form 5695, 'HomeLocatedInUSAInd' or 'OriginalUserInd' or 'FiveYearUseExpectationInd' have a choice of "No" indicated, then 'HomeAddress' must not have a value.
F5695-007-04 - If Form 5695, 'HomeAddress' has a value, then 'HomeLocatedInUSAInd' and 'OriginalUserInd' and 'FiveYearUseExpectationInd' must have a choice of "Yes" indicated.

 

Earlier, about 3 weeks ago, I got a message that this Form needs updating by Intuit. Is that complete already? or am I doing something wrong?

 
AmyC
Expert Alumni

2023 New home construction Energy Credit

I see one issue outstanding so that may be affecting your return. The issue has an expected resolution date of 2/28 for INV 28129. This may not be your issue but perhaps you got caught while they were working on the form. I would suggest waiting until the form is completely updated and integrated. You can try again anytime, just be sure to check that all forms are correct before hitting the efile button.

 

The: Instructions for Form 5695 indicates line 17e should be yes for new home construction.

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