DawnC
Employee Tax Expert

Deductions & credits

The furnace and the A/C must have been placed in service, or installed, in 2023, and you need the costs separated to take both credits.   A 30% credit, up to a maximum of $1,200, may be allowed for:

 

  • Insulation material or air sealing material or systems,
  • Exterior doors,
  • Windows and skylights,
  • Central air conditioners,
  • Natural gas, propane or oil water heaters,
  • Natural gas, propane or oil furnaces or hot water boilers,
  • Improvements or replacement of panelboards, subpanelboards, branch circuits or feeders, and
  • Home energy audits.

The limits for each category of these items that qualify for a credit is discussed later in Section A—Qualified Energy Efficiency Improvements.

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