Eligibility criteria of Residential Energy Credits isn’t clear in Turbotax

[PJB]

I own a single family home in California that I have been renting out the last 20+ years while living overseas. During 2024, I installed a new 200A Main Panel, Heat Pump Water Heater, and Heat Pump HVAC incl. all new ductwork.

As part of the IRA, I was under the impression that I would be eligible for a 30% federal tax credit (The California IRA rebates program was not yet active at time of installation).

However, I struggle with the wording of completing the Turbotax EasyStep. The home is located in the US, but where I personally live is NOT in the US. Turbotax has my overseas address and when I select YES, it doesn’t point out that I’m not eligible for this credit. When I select NO, it says that the improvements were NOT made in the US, but that is INCORRECT. The house is in California.

Thus my confusion….here is the screen print when I answer NO:

When I read the IRS Instructions for Form 5695, it defines a Home as where you lived in 2024, and goes on to define your Main Home as generally the home where you live most of the time.

Any thoughts/hints? I didn't find anything about this in FAQ's but maybe am looking in the wrong place.

Thanks!

[MindyB · Accepted solution]

Based on the information you provided, you are not eligible for the Energy Efficient Home Improvement Credit, because the improvement was made to a rental property, not your home.

From the IRS: "The credit is never available for homes not used as a residence by the taxpayer. For example, landlords can never use the credit for homes they rent out but do not use as a residence themselves."