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Deductions & credits
I see, thank you for the clarification. While section A could work as energy efficient improvement section B does seem to fit your situation better. You will need to answer all of the questions in the section. Instructions for Form 5695 Part II section B states:
To figure the credit, enter the amounts you paid for these items on the appropriate lines of Form 5695, Part II. The amount allocable to you is the smaller of:
The amount you paid, or The qualifying credit of the property.
The credit limit for each property is as follows.
$1,200 for insulation or air sealing material system.
$250 for one exterior door and $500 for all exterior doors.
$600 for windows.
$600 for central air conditioners.
$600 for natural gas, propane, or oil water heaters.
$600 for natural gas, propane, or oil furnace or hot water boilers.
$600 for improvements or replacements of panelboards, subpanelboards, branch circuits, or feeders.
$150 for home energy audits.
$2,000 for heat pumps and heat pump water heaters; biomass stoves and biomass boilers.
Energystar states: The central air conditioner also needs a blower motor – which is usually part of the furnace – to blow the cool air through the duct system. The only way to ensure that your new air conditioner performs at its rated efficiency is to replace your heating system at the same time.
The gas furnace alone has a limit of 30% or $600. Furnaces (Natural Gas, Oil) Tax Credits
This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032. Gas Furnaces
ENERGY STAR certified gas furnaces with AFUE > 97% are eligible.
- How to Claim the Federal Tax Credits
- Strategies to Maximize Your Federal Tax Savings
- Claim the credits using the IRS Form 5695.
- Instructions for Form 5695
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