Be sure to enter the cost of the qualifying HVAC as an Energy-Efficient Building Property. (Click the screenshot below for reference.) You can get a credit of up to 100% of the cost of your energy-efficient building property, with a dollar limit of $300. There are a few reasons why you may not be receiving the full $300:
- This is a nonrefundable
credit, so it can't be greater than your tax liability. (If you only owe the IRS $50, the credit is limited to $50.)
- You may have claimed a credit in a previous year. (While the credit for energy-efficient building property is limited to $300, other energy-efficient items (doors, windows, insulation, etc.) may increase the total Nonbusiness Energy Property Credit to $500. However, there is a total combined lifetime limit of $500, so if you have claimed the credit in the past your 2016 deduction will be reduced.)
- You have incorrectly entered the HVAC in the field for "Advanced Main Air Circulating Fan", which has a credit limit of $50.
