Why do I only get a $150 credit for installing an energy efficient furnance and air conditioner ($8652) when the cap is $500.00

 
HelenaC
New Member

Get your taxes done using TurboTax

You need to enter two amounts. One for the furnace and one for the air conditioner. See the screenshot below.

  • The furnace is eligible for a maximum credit of $150 and the air conditioner is eligible for a maximum $50 credit.
  • Each energy improvement has its own maximum credit allowed. 
  • The $500 is maximum what you could receive for all improvements, like furnace, air conditioner, insulation, windows, etc.

Tip: You can see which energy-saving home improvements qualify for a federal tax credit at the Energy Star website.

Energy Improvements are entered in the Deductions & Credits section:

  1. Open your return, if you don't already have it open.
  2. In TurboTax, search for energy improvements. (Do not search for "energy credit," as this will take you to the wrong place in the program.)
  3. Click the "Jump to" link in the search results.
  4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes and continue. Follow the on-screen instructions.
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