This is not supported under Home Energy Credits and it is not in forms to be administered, TT lists "Certain electric heat pump water heaters, electric heat pumps" on the header page for Energy Saving Home Improvements however does not provide a place within the click throughs to take advantage of electric heat pumps - the credit I am looking for should be 30% of total cost (materials & labor) not to exceed $2,000. Can you please advise when this will be added?

25C(b)(5)Heat Pump and Heat Pump Water Heaters; Biomass Stoves and Boilers

Notwithstanding paragraphs (1) and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses (i) and (ii) of subsection (d)(2)(A) and in subsection (d)(2)(B).

JohnW152

Form 5695, Residential Energy Credits, the form on which electric heat pump costs would be deducted for tax year 2023, hasn't yet been finalized in TurboTax.

The form is tentatively scheduled for use on February 7th, 2024. You can check for any updates in TurboTax's Tax form availability app.

@CFallon

[Edited 1/29/2024 | 11:22 am PST]

CFallon

@JohnW152 thanks for the quick reply.

I am using the deluxe app version, however I was able to locate Energy Efficient Building Property in Energy Home Credits on the app.

For Energy Effect Building Property under learn more it says "the maximum amount for energy efficient building property is 10% with a $300 credit limit" this is not the credit I am looking for. The credit I am looking for should be 30% of total cost (materials & labor) not to exceed $2,000. Again this is for an Electric Heat Pump part of 25C.