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That would qualify for the Home Improvement Energy Efficiency Credit. It would not be new construction, it would be home improvement.
The Home Improvement Energy Efficient Credit is a non-refundable credit
Don't overthink things. Improvements to a 70 year old home are NOT related to new construction.
The question is asked because the energy efficient improvement interview combines 3 different types of credits, some of which only apply to renovations of existing homes, and some of which apply to renovations and to new construction. Just give the obvious answer and move forward.
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