IRS Instructions for Form 5695 AND Fact Sheet 2022-40 State:
Form 5695: Part II Section A Line 17e: "Were any of these improvements related to the construction of this home? If you checked the "Yes" box, you can only claim the energy efficient home IMPROVEMENT [EMPHASIS ADDED]😎 credit for qualifying improvements that were not related to the construction of the home. Do not include expenses related to the construction of your main home, even if the improvements were made after you moved into the home. COMMENT: IF YOU ANSWER YES, TT LOCKS YOU OUT OF SECTION B. INSTRUCTIONS FOR FORM 5695 STATE, ON PAGE 5: "IF YOU CHECK THE YES BOX, SKIP LINES 18A THROUGH 20B. NOTE: SECTION B STARTS ON LINE 21a.
Fact Sheet 2022-40:
Q2. Can a taxpayer claim the credits for expenditures incurred for an existing home? What about a newly constructed home? (added December 22, 2022)
A2. The rules vary by credit. • Under the Energy Efficient Home Improvement Credit: a taxpayer can claim the credit only for qualifying expenditures incurred for an existing home or for an addition to or renovation of an existing home, and not for a newly constructed home. • Under the Residential Clean Energy Property Credit: a taxpayer can claim the credit for qualifying expenditures incurred for either an existing home or a newly constructed home.[Emphasis Added]😎
I just built a home in 2023 and cannot take credit for upgrades made for RESIDENTIAL ENERGY PROPERTY EXPENDITURES (SECTION B) in TT because of my answer of yes to Section A line 17e.
Please correct.
