Home energy credit for air conditioners - Turbo Tax max at $600, should be $1200?

Forum|Forum|2 years ago
February 17, 2024
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Per the IRS publication below, the max credit should be $1200. However, when I enter in Turbo Tax, it maxes out the credit at $600. I installed 2 x air conditioners and should be eligible for $600 each, up to $1200. I don't see any way to enter the number of units installed, only the total cost.

Home energy tax credits | Internal Revenue Service (irs.gov)

Vanessa A

No. The max credit is $600 for AC, not per AC unit. So, it doesn't matter if you installed one or 5, your credit is limited to $600 for Air Conditioners.

To get the $1,200, you would need to have done other things as well like windows, doors or insulation.

The overall Home Energy Efficiency Improvement Credit is limited to $1,200 for all items but the biomass boilers or furnaces. These two items allow you to claim an additional $2,000 for the Home Energy Efficiency Improvement Credit.

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sharpnadoAuthor

Thanks for the reply.

From the IRS pub, this is what I am reading. The bold line shows that it should be 30% of the cost, up to a maximum of $1200. So, I'm still a bit confused how you are getting $600.

======Pasted From the IRS Link=====

These expenses may qualify:

Exterior doors, windows, skylights and insulation materials
Central air conditioners, water heaters, furnaces, boilers and heat pumps
Biomass stoves and boilers
Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

2022: 30%, up to a lifetime maximum of $500
2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit