In 2023 we bought an AC unit which qualifies for the $600 Home Energy Credit; however, when I enter the details in, TurboTax Deluxe Desktop 2023 edition is limiting the credit to $300. From what I understood it was 30% up to $600 per item. What am I missing?
https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
Residential energy property that meets the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed qualifies for a credit up to $600 per item. Costs may include labor for installation.
Qualified property includes new:
- Central air conditioners
- Natural gas, propane, or oil water heaters
- Natural gas, propane, or oil furnaces and hot water boilers
