I filled out the info for a Home Energy Credit for our home, since we replaced all of our windows in 2024. But Turbo Tax told me we can't get the Home Energy Credit. Why?

[AmyC]

The credit is limited to your tax liability. If your credit is greater than your tax liability, it can sometimes carry forward. There are stipulations, depending on what you are claiming. Windows in your main home do not qualify.

Reference:

Federal Tax Credits for Energy Efficiency

About Form 5695, Residential Energy Credits

Energy Efficient Home Improvement Credit

[Edited 2/11/2024 |11:53 am PST]

@zellgrotto 

[zellgrotto]

Yes, I answered all the questions in TurboTax, and I read up on the credit, and it seems we qualify. There wasn’t any reason given; it just said our credit was zero.

Perhaps after I enter our 1099 DIV info, I'll try again.

[zellgrotto]

Oh I think I misread your response. Windows in our home do NOT qualify? I thought they did.

[MayaD · Accepted solution]

Windows in your main home qualify. You can claim 30% of product cost with limits on exterior windows and skylights ($600). 
 However, The credit is nonrefundable. For nonrefundable tax credits, once your tax liability is zero, you won't get any leftover amount back as a refund.

 You can't apply any excess credit to future tax years.

Energy Efficient Home Improvement Credit