Where can I input the information for the purchase and installation of a biomass stove? It is a 25(D) tax credit if 26% for 2021, Thank you

[rangerbo]

I have a certificate it is a new credit beginning 2021-2023.

[PattiF]

You will enter the information in the Deduction & Credits section:

Under Your Home, Choose Home Energy Credits and Click Start

1. Answer Yes, we made energy-efficient improvements or have a carryforward at the bottom of the page and Continue
2. Indicate that your home is in the US and that Yes, the improvements were made to our main home, Continue
3. Answer the question about Windows and Continue
4. Answer Did you get any Home Energy Credits in Prior Years, Continue
5. If Yes, enter the Prior Year information; if No you will be able to enter the Biomass Information on the next page
6. Enter Any Additional Energy-Efficient Improvements
7. Enter the Purchase price of the Biomass Stove, And follow the Prompts

[Sarah SW]

This form doesn't calculate correctly. I did the steps above, entered my cost of $7,444 and it gave me only a $300 credit when it should have been $1800 roughly. It seems it isn't updated to the 2021-2023 credit amounts.

[DMarkM1]

Normally not getting the full credit is due to the credit being non-refundable.  That means you can only get enough credit to bring your tax on line 18 on your form 1040 to zero.   The remainder however can be carried forward to future years.  

To see your form 1040 before filing:  

1. "Tax Tools" in the left hand menu

2. "Tools"

3. "View Tax Summary" in the main screen

4. "Preview my 1040" in the left hand menu

[Sarah SW]

Hi there- I don't think that's the case. After finishing it says I owe $1300ish. So I don't think my tax liability is 0. 

[PattiF]

You may have answered a question incorrectly. Make sure that you indicate that you are the owner of your home, that your home is in the United States, that this is your main home and that the improvements weren't for the construction of your main home.

To Enter your cost in the program:

1. Don't enter any amount on the first page Tell US How Much You Paid for Energy'Savings Improvements.
2. Continue to the screen Enter Any Additional Energy-Efficient Improvements and enter the cost of the Biomass fuel property

[SteamTrain]

@Sarah SW 

Also, if you did get an indicated $300 credit, then you probably entered the Biomass stove in the wrong section of the interview.   If you look at the picture PattiF posted in her first response, you can see that you were supposed to enter it on the page taht has the Solar Tax Credits on it. 

You may have entered your $$ on the  Energy-Efficient Building Property page....and that's where it went last year, but not for 2021 taxes :

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[SteamTrain]

@Sarah SW   @PattiF 

And another thought.

  [[EDITED]]  Even if you put it in the correct place, I found an issue with he Desktop software.  IF you had generated the form 5695 early in January, before the new Biomass entry was implemented in a later update...you might have to delete the existing form 5695, then go back thru the Home Energy credits interview to re-enter your Biomass $$ before they take effect.

[Sarah SW]

Thank you everyone. I had entered it on the first page. It would be great if there were more instructions up front on the pages to indicate the years the questions apply to. But, I am glad to have it corrected and now my amount owed down to $356 🙂