Federal Module -- §25C Energy Credit -- Wrong tax treatment

TurboTax Intuit Assist responded to a question about air conditioner tax credits with information about educational expense deductions -- a completely off-topic response that left the user without any guidance on IRC §25C, the Energy Efficient Home Improvement Credit, or Form 5695. Additionally, §25C was terminated by OBBBA P.L. 119-21 for property placed in service after December 31, 2025. A user asking this question in 2026 would receive no credit regardless of the AI's answer. TurboTax's failure to answer the §25C question at all is compounded by the fact that a correct answer would also need to address the OBBBA termination date.

A small business owner who also owns their home could miss a legitimate §25C energy credit worth up to $600 per qualifying HVAC unit, and if they relied on the AI's misdirection toward education credits, could also incorrectly claim an education credit they do not qualify for, triggering an IRS audit or accuracy-related penalty under IRC §6662.