In 2018, I installed new windows, a new high efficiency furnace and a/c, but it is calculating a zero energy credit. Why?

[Ashby]

Unfortunately, that energy credit is currently expired, and we don't know when (or if) Congress will approve this credit for tax year 2018. This credit covered energy-efficient improvements like windows, doors, skylights, insulation, roofing products, nonsolar water heaters, heating, ventilating, and cooling systems. If this credit is approved after your file your 2018 return, you can file an amendment to claim the credit.

I do not believe this credit will get approved for 2018.

[nk2001]

 I suppose while filing amended return it will pick up the new form from 2018 tax software. Is that correct?

thanks.

[VictoriaD75]

Yes. Form 5695 is available, but there is a lifetime max on the credit. 

You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

• A maximum of $200 can be for windows.
• The maximum tax credit for a furnace circulating fan is $50.
• The maximum credit for a furnace or boiler is $150.
• The maximum credit for any other single residential energy property cost is $300.

To add the information to your return, under the Federal menu on the left, choose Deductions & Credits. Expand the menu for Your Home. Click Start/Revisit next to Home Energy Credits. Answer Yes on the following screen and click Continue. Enter the information on the screens that follow.

Energy Tax Credit

[Opus 17]

Sorry, for improvements installed in 2018, TurboTax has not yet been updated to allow you to file an amended return. The program update is scheduled for mid May. It was delayed because there were so many tax law changes that had to be processed for 2019, and then more changes that had to be processed for the coronavirus emergency.  

(improvements made in 2019 can be claimed on your 2019 tax return. That software is ready.)