Deductions & credits

Thanks for the reply.

 

From the IRS pub, this is what I am reading.  The bold line shows that it should be 30% of the cost, up to a maximum of $1200.    So, I'm still a bit confused how you are getting $600.

 

======Pasted From the IRS Link=====

 

These expenses may qualify:

  • Exterior doors, windows, skylights and insulation materials
  • Central air conditioners, water heaters, furnaces, boilers and heat pumps
  • Biomass stoves and boilers
  • Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

  • 2022: 30%, up to a lifetime maximum of $500
  • 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit