Home Energy credits

I installed new energy efficient HVAC systems in 2020.  Two units at about $7K each.  How much credit should I get for that $14K investment?  I see a credit of $491, is that right?

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The credit for an efficient heat pump or air conditioner is 10% of the cost up to $300. The credit for an efficient gas furnace is 10% of the cost up to $150.  So I’m not sure how you are showing $491. Although I think, there may be a separate credit for an efficient whole house circulating fan.  To get the credit, you would have to break up the cost of the HVAC system into separate air conditioner and furnace components. So I don’t know exactly what you entered in the program.

 

You would need to look at form 5695. If using the online program, you can’t print specific forms until after you have paid, although you can pay and then go back to review your return and make changes before you actually file. 

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Thanks.  I forgot I also installed energy efficient windows so that is probably why it went up to $410 (not $491).

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@mani6 wrote:

Thanks.  I forgot I also installed energy efficient windows so that is probably why it went up to $410 (not $491).


In that case you may be able to get the credit up to the maximum of $500.  If your system is an electric heat pump, you max out at $300, but if it's a gas furnace plus A/C, and both parts meet the required efficiency standard, then you could split the cost and enter the single upgrade in both the furnace and A/C categories, that should get you close to $450, then the windows will put you to the $500 maximum.  Unless your credit is limited because you took it previously (the $500 is a lifetime maximum per taxpayer, not per home). 

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Thanks again.  Even if I split it comes to $410.  Now I know why.  I got $90 credit in 2019 because of attic insulation so the $410 makes it the $500 max you talk about,  Thanks Champ.