I was told I'd receive a $2000 rebate for my new ac heat pump system. It shows $0 back. What am I doing wrong?

[NCperson]

what is on Line 16 of Form 1040?  the energy credit is "non-refundable" which means it cannot exceed Line 16.

Let's start there, 

[LindaS5247]

If you are not getting the $2000 credit for your AC heat pump tax credit first be aware that this is a nonrefundable tax credit. This means it can only reduce your tax liability to zero. It does not result in a refund of taxes. If your tax liability is already $0, or if the credit exceeds what you owe, you will not receive the full $2,000 credit.

You can look at your Form 1040, line 18 to see if you have any tax liability to make sure this isn't why you are getting the credit.

Next, make sure your entries in TurboTax are correct. You can review your entries in TurboTax using the steps 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. On the screen that says Enter your qualified energy property costs, you will enter your QMID and the cost of your AC  Heat Pump
13. On the screen Did you install improvements or replacements for enabling property? Say Yes if you installed panelboards, branch circuits etc required to support the improvements, and if not, say No and Continue
14. The next screen says Improvements or replacements installed for enabling property, select the one that applies and enter your QMID and the cost you paid for all materials, and Continue
15. Continue through your TurboTax screens to complete your entries regarding your energy credit.

Note: You need a Qualified Manufacturer Identification (QMID) code to claim the federal tax credit for your AC Heat Pump system.

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.

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

Click here Energy-Efficient Energy Efficient Home Improvement Credit

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

{Edited 03/22/2026|06:19 PST}

@NCperson 

[NCperson]

@LindaS5247 - can't be Line 24; has to be Line 18 less Line 19. 

Non-refundable credits can't be used to cover SE tax, etc.  (line 23)

The energy credit is the lesser of the energy credit or Line 18 less Line 19, which ever is less.