Form 5695 Part II Energy Efficient Home Improvement Credits

[JeffCPA]

Good morning.  Second guessing myself on this.

5695 Energy Efficient Home Improvement credits has part A and part B.

Part A, are things like insulation, windows, doors that are installed on a home.  The smart worksheet questionniare clearly asks if the improvements were related to the "construction of the main home."  And further down the form it clearly states that if the improvements were related to construction of the main home, then you cannot claim them.  However, if you check the box yes, and enter a cost for new windows, the form actually calculates a credit.  Why is it doing that, if you check box yes, and that means you don't qualify. 

Part B are things like central air conditioners, new heat pumps, new boilers,etc.  The questioins for this do not ask if this was related to construction of main home.  So, if a person is building a brand new home to move into, and they a qualifying heat pump was part of the price of that new home, can the price of that heat pump installed in a new home be claimed for this credit?

It is appearing to me that only the energy efficiet improvement credits like windows, doors, insulation are the ones that cannot be claimed on construction of new home.   

I've done some double checking and I believe all of such energy efficient home improvement credits under Part II, cannot be on the construction of a main home. But would like the community to confirm.  Thank you. 

[dkh · Accepted solution]

IRS instructions for F5695 under section Who Can Take the Credits states  Part I is existing homes and new construction; Part II is existing only

I second guess myself on these also. I reread the instructions every time I have an energy credit.

[JeffCPA]

thank you dkh.   That was my final conclusion as well.   All of the part II energy efficient credits cannot be taken on new construction.   Need confirmation, to help me tax season brain fog and get out of the rabbit hole!!! Thanks. 

[qbteachmt]

The same is often true for energy company credits and appliance manufacturer rebates. They don't care if you are making wise choices. They only care if you are making wise changes. Oh, you put in super-efficient X in the new place? If that didn't replace something already operating by coal or fuel oil, there is no credit.