Question

energy home improvement credit

Forum|Forum|3 years ago
April 5, 2023
2 replies
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Replaced two old central air conditioner units with two qualified ones (14 seer). Paid $11, 300 total. Entered that $$ but my credit is computed as $300. Is that just for one unit or all units? I thought the credit would be 10% of total cost for both units. Did not take any previous credits 2006-21. Note: we don't have enough other deductions to itemize. I do have a business income/ expenses but don't claim home office.

TurboTax Home & Biz Windows

DoninGA

Employee

The energy efficient building property credit is a maximum of $300.

IRS Form 5695 Instructions page 2 -https://www.irs.gov/pub/irs-pdf/i5695.pdf

You may be able to take a credit equal to the sum of:

1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and
2. Any residential energy property costs paid or incurred in 2022.
However, this credit is limited as follows.
• A total combined credit limit of $500 for all tax years after 2005.
• A combined credit limit of $200 for windows for all tax years after 2005.
• A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.

V

Vanessa A

The credit is worth 10% of the cost with a limit of $300 for 2022 for Central Air Conditioning total for the year. It is not per unit, it is per return/taxpayer.

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