Hello, Morgan48 and thank you for joining us!
Since you used a home warranty to help cover the cost of your AC unit, you will have to subtract the amout the warranty covered from the total cost paid for the unit, before calculating your Home Energy Efficiency Improvement Credit. Some important things to consider when calculating the credit for the AC are:
- The maximum credit for all AC is $600. The overall Home Energy Efficiency Improvement Credit is generally limited to $1,200 for all eligible items, except for bio mass boilers and furnaces, which allow you to claim up to an additional $2,000 for the Home Energy Efficiency Improvement Credit.
- This is a non-efundable credit. and it does not carry forward to be used later on, unlike the Residential Clean Energy Property Credit, which does.
For additional information on energy credits see:
Please feel free to reach backout with any additional questions or concerns you might have!
Have an amazing rest of your day!
Terri Lynn, EA
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Terri Lynn
