Why isn’t my Voltex HPTS-50 heat pump water heater (~$6,000) calculating the 25C Energy Efficient Home Improvement credit in TurboTax?

[Nanakin88]

I’m entering a Voltex HPTS-50 (200 series) heat pump water heater under the Energy Efficient Home Improvement Credit (Form 5695, Part II), but TurboTax is showing $0 for the credit allowed this year (Line 29H). Details: • Cost: ~$6,000 • Installed in primary residence in the U.S. this tax year • Panel upgrade also entered separately (Line 25C = $5,000 → calculates $600 correctly) • QMID entered • All qualifying questions answered correctly (ownership, installation year, primary residence) • We went through a county energy efficiency program for this water heater, so this is definitely a qualifying 25C heat pump water heater According to IRS rules, a qualified heat pump water heater should calculate 30% of cost (~$1,800) in the $2,000 bucket, but TurboTax is not recognizing it. Has anyone else run into this misclassification? Is there a recommended workaround or manual entry fix so the correct credit appears? Thank you!

[Sake4263]

I'm having the same issue in turbotax desktop deluxe version. line 29g is calculated correctly but 29H says $0

[mkctt]

TTAX premier desktop is having the same issue since an update this week - line 29h of form 5695 is not calculating.

[Vanessa A]

We are aware of this issue and currently looking into it. The IRS has issued a correction to the 2025 Instructions on their end. We will 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.  

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@Nanakin88 @mkctt @Sake4263 

[Sake4263]

It's not related to the IRS correction. It's related to turbotax software apparently not knowing how to do simple multiplication. As the original poster said, the software is populating line 29h with zero instead of the right number, which is 29g x 30%.