I want to claim the 25C tax credit for a heat pump water heater, but it's not working. I entered the QMID and the cost of $3,501. Is there a problem with the tool?

[Vanessa A]

What is it doing that it is not working?  Is it giving you an error message or reason you cannot claim it or what exactly is happening?

[ianm12]

I'm having the same issue. I get to the end and it calculates I get to claim $0. I've manually calculated form 5695 and I should be allowed the full 30% of the water heater install. I hope someone fixes this (and reports back to the forum).

[RobertB4444]

Form 5695 calculates a non-refundable credit.  In order to use it you have to have an income tax liability greater than the amount of the credit.  If your income tax liability is zero then you can't take the credit this year.

[ianm12]

Agreed. I most definitely have income tax liability and that’s why I said when I do the manual calculations for form 5695, I calculate I do get the non-refundable credit (it’s a pretty easy check, honestly).  I have seen elsewhere that TurboTax has a calculation and/or a QMID issue with the home energy improvement credit and want confirmation that it’s being worked and a due date for it. 

[ssdoll26]

I'm having the exact same issue with a Rheem heat pump water heater, QMID K3A8. When I work through form 5695 manually I see that I am eligible for the full 30% credit, but Turbotax calculates a credit of $0 with the message, "Based on what you've entered so far, we can't get you the home energy credit for 2025 and you have no credit to carry forward to 2026." My tax liability is significantly more than the non-refundable credit amount.

[nick]

I do have tax liability, so that's not the issue. Based on the other responses I'm seeing here I believe this to be a bug.

[nick]

No error, just doesn't calculate the credit and add it to my total.

[Vanessa A]

 The IRS has issued a correction to the 2025 Instructions on their end. We  are looking into it to see if this is related to the IRS correction or if it is something else. 

We have corrected the calculation for joint occupants of a home who are claiming the energy efficien...

Although, the IRS is saying March 6, if this is the date that they will have the forms corrected, TurboTax software will take a little bit to then make the changes.  You can attempt to refile on the 6th or wait for several days after that.  

[ianm12]

This appears to be fixed online and the credit makes it on to the right form. Return was accepted.