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gcav
Level 1

Energy credit for electrical panel replacement

I replaced our electrical panel and service due panel failing - upgraded to 200 amp. How do I enter the deduction in TurboTax for purchasing, upgrade and labor involved in the the electrical panel installation? My understanding is a panel upgrade/replacement valid for this credit. But, TurboTax is stopping me as it needs a QMID code. Manufacturer of the panel is Siemans, but there is no QMID code. 

Appreciate any information..

Thanks 

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Energy credit for electrical panel replacement


@gcav wrote:

I replaced our electrical panel and service due panel failing - upgraded to 200 amp.


 

 

Just replacing the electric panel doesn't qualify for the tax credit.  It must be replaced in conjunction with another energy-qualifying item (such as a heat pump or something like that) and enables you to use that other energy-qualifying item.

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19 Replies
DianeW777
Expert Alumni

Energy credit for electrical panel replacement

Yes, this number is a requirement for the reasons noted below. If you are unable to get a code registered with the IRS you may not get the credit for your panelboard.

It would be best to double check with the manufacturer to be sure you have the correct code. Also, check to see if they did register with the IRS here. Qualified Manufacturer

If you confirm all is correct, be sure your TurboTax software is updated with the latest information. 

TurboTax Online will update automatically. 

TurboTax Desktop is as follows:

  1. Sign in, select Online in the top left menu bar, 
  2. Next, select Check for Updates
  3. TurboTax will update or alert you that you are already up to date

Please add additional information here if you need further assistance and we will help.

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Energy credit for electrical panel replacement


@gcav wrote:

I replaced our electrical panel and service due panel failing - upgraded to 200 amp.


 

 

Just replacing the electric panel doesn't qualify for the tax credit.  It must be replaced in conjunction with another energy-qualifying item (such as a heat pump or something like that) and enables you to use that other energy-qualifying item.

Energy credit for electrical panel replacement

I have the same exact problem. Even the instructions for the from don’t detail Line 25D. And the explanation about QMID on the IRS website does not mention them being for panelboards. This seems to be an error somehow

gcav
Level 1

Energy credit for electrical panel replacement

Thank you for the follow up! I thought that may be the case, but couldn't find anything to verify that!

 

Thanks again..

gcav
Level 1

Energy credit for electrical panel replacement

Right.. the instructions aren't clear enough to determine that the panel replacement/upgrade HAS to be a requirement for another piece of "qualified" equipment. Neither in the software or on the IRS site.  My original read on this was that the panel was "qualified" as long as it was 200 amp... 

Energy credit for electrical panel replacement

Unfortunately, I do not yet see any generic panel mfgs on the IRS QMID list for as of 2/16/2025 only one smart panel mfg (EG4 ELECTRONICS LLN)

https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit-qualified-manufactur... 

Energy credit for electrical panel replacement

Both TurboTax's requirements and their explanation are incorrect on this item. If you installed a heat pump, you have a QMID for that. Even if you installed an electrical panel (whether or not it is >200 amp to get a credit), electrical panels do not have a QMID. The fact that TurboTax requires one is an error. I could not find a representative who could assist with this.

Energy credit for electrical panel replacement

Then the IRS form has to be in error as well because it also requires a QMID for the “enabling equipment” AKA the panel board. 

Energy credit for electrical panel replacement

Yes, that is confusing. At least in the IRS form, you could check "no", skip that section and move on. TurboTax forces a response.

RogerD1
Expert Alumni

Energy credit for electrical panel replacement

Based on the following, the QMID codes are needed even for the enabling property.  According to the IRS FAQ for Energy Efficient Home Improvements :

 

"For any item of specified property placed in service on or after Jan. 1, 2025, taxpayers must include the PIN of such item on their tax returns. For specified property placed in service in 2025, taxpayers may use a QM Code (a unique 4-character code assigned to a QM by the IRS) in lieu of a PIN. For enabling property, taxpayers may use a QM Code in lieu of a PIN, regardless of whether the enabling property is placed in service after 2025. See section 5.04 of Revenue Procedure 2024-31."

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Energy credit for electrical panel replacement

Clear as Mud for my understanding

 

We did panel upgrade for heat pump installation, and still do not understand if there is any possible way to claim that expense... No QM or PIN.

 

Also Tankless water heater by Navien... I see Nortiz on the list and not Navien 

LindaS5247
Expert Alumni

Energy credit for electrical panel replacement

You need a Qualified Manufacturer Indentification code to claim the federal tax credit for your Navien tankless water heater installed in 2025.

 

If you do not have a QMID (Qualified Manufacturer ID) for your product, you can contact the manufacturer directly to request their 4-digit code. The QMID is assigned to the manufacturer, not the installer.

 

You can also try checking with your installer for it or it may be on your  "Manufacturer Certification Statement," which should list the necessary information for Form 5695, including your QMID. You can try googling it.

 

If you had improvement costs for enabling property, such as replacing panelboards or circuits that is addressed in steps 14-15 below.

  

You can get to these screens in your TurboTax program to answer these questions using the steps listed below:

 

  1. Click on Search in the top right of your TurboTax screen
  2. Type residential energy credit in the search box
  3. Click on the link Jump to residential energy credit
  4. This will take you to the input screen in TurboTax to enter your information regarding your new water heater
  5. Your screen will say Energy Efficient home improvements
  6. Answer Yes to I made these energy-efficient improvements or have a carryforward and click on Continue
  7. Answer Yes to my home is in the U.S. and Continue through your TurboTax screens 
  8. On the screen that says Did you have any of these residential-related clean energy costs in 2025? Answer No and Continue
  9. On the screen that says Did you have any of these qualified energy efficient improvements in 2025? Select No and Continue
  10. On the screen that says Did you have any of these residential energy property costs in 2025? Click on Yes and Continue
  11. On the screen that says Tell us more about the residential energy property, make sure to answer that the home is located in the United States, Did you pay for a home energy audit Yes or No, Was the qualifying energy property originally placed in service by you? Yes
  12. Answer the follow-up screens about your new hot water heater
  13. On the screen that says Enter your qualified energy property costs, you will enter your QMID and the cost of your hot water heater
  14. On the screen Did you install improvements or replacements for enabling property? This is where you say Yes if you installed panelboards, branch circuits etc required to support the improvements, and Continue
  15. The next screen says Improvements or replacements installed for enabling property, select the one that applies and enter your QMID and cost you paid for all materials, and Continue
  16. Your screen will say Qualified Energy Property Costs How many homes had qualified energy property installed? Select Only one home and Continue
  17. On the next screen you will confirm your address and Continue
  18. The next screen asks if there were Condo or Co-op shared costs select No and Continue
  19. The next screen asks if you had a energy credit carryforward from 2024, answer and Continue

 

 

Click here for Where do I enter qualified energy-saving improvements?

Click here for Energy Efficient Home Improvement Credit

Click here for 2024-2025 Energy Tax Credit: Which Home Improvements Qualify?
Click here for Energy Efficient Home Improvement Credit qualified manufacturer requirements



Please return to Community if you have any additional information or questions and we would be happy to help.

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kvee
Level 2

Energy credit for electrical panel replacement

The IRS home Energy Credits says  “Costs of certain electrical components needed to support the residential energy property, including panelboards, sub-panelboards, branch circuits, and feeders, also qualify for the credit if they meet the National Electric Code and have a capacity of 200 amps or more.). The problem is the QIMD code.   Many manufacturers doesn’t have one..    FORM 5695 doesn’t ask for one for a panelboard,  The person who says it’s not needed is correct.  

turbotax you need to update the software so we can file our taxes.  

Energy credit for electrical panel replacement

The form does require the QMID for the “enabling property”

AKA the panel board 

IMG_2447.png

 

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