I purchased a water heater in 2023 and under the Energy Efficient Home Improvement Credit it shows an annual limit of $600. Why is it only giving me $300?

[anthonyp12]

Energy start gov website and Turbo Tax (https://turbotax.intuit.com/tax-tips/home-ownership/energy-tax-credit-which-home-improvements-qualif...) both state I should be claim 30%of project cost - $600 maximum amount credited but when I enter the total amount I paid ($4,500) for the water heater, it says $300. Why am I not getting the $600?

[xmasbaby0]

Maybe you are waiting for some forms.  Click Review to see if you are missing some forms needed in order to e-file.

Many federal and state forms are not yet available.  Check here for form availability. The dates are subject to change.

Tax form availability tool,

No hurry to e-file since the IRS will not begin to accept/reject 2023 e-files until January 29.   And….a state return cannot be accepted until after the IRS accepts your federal return.

[anthonyp12]

All Illinois forms are available. I’m entering the amount I paid for the water heater under Energy-Efficient Building Property on the 5695, residential energy credit but it’s saying Good News: You qualify for a home energy credit of $300. Everywhere I’m reading it should be $600. 

[rjs]

The problem is in the federal tax return, not the state. The energy credits section of TurboTax is not yet ready for filing because it has not yet been updated for 2023. Form 5695 and the interview are tentatively expected to be available February 1. (That date could change.) Try entering the credit again after February 1.

[anthonyp12]

I can wait but the questions and verbiage make it sound like it’s already updated. 

Energy-Saving Home Improvements

Being earth-friendly not only feels good, but it'll save you money on your taxes too. We'll see if you qualify for a 2023credit and also check for any credit carryforwards from 2022.

[anthonyp12]

Still not updated. Do you know where we can find the date it’ll be updated? Thank you!

TurboTax FAQ

by Intuit•Updated 1 months ago•Traducir al español

What is energy-efficient building property?

The IRS defines energy-efficient building property as:

• An electric heat pump water heater that yields an energy factor of at least 2.2 in the standard Department of Energy test procedure.
• An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) as in effect on January 1, 2009.
• A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2009.
• A natural gas, propane, or oil water heater that has an energy factor of at least 0.82 or a thermal efficiency of at least 90%.
• An advanced main air circulating fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system and uses no more than 2% of the furnace’s total energy.
• A biomass fuel stove used to heat your home (or water for your home) that has a thermal efficiency rating of at least 75%. Wood and wood pellets are considered biomass. For 2022, the credit isn't capped and covers 30% of the full cost (purchase and installation).

You can get 10% of the cost of energy-efficient building property or $300 (whichever is less) as a tax credit.

[DoninGA]

@anthonyp12 

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[anthonyp12]

Thank you!

[anthonyp12]

It’s now available. Thank you very much!