DMarkM1
Expert Alumni

Deductions & credits

The maximum Energy Efficient Home Improvement credit you can claim in a year is $3200.  For the central AC, water heater and boiler you can get 30% of the costs up to $600 each but that is capped at a maximum total credit of $1200.  So the cost for each (or at least 2) of those components (labor, preparation, assembly and item) if over $2000 each will get you the maximum $1200 credit.  

 

You can also get a credit for 30% of the cost of the heat pump up to $2000.  So if the cost of that component is over $7000 you will get the maximum $2000 credit.  

 

Keep in mind these are non-refundable credits. That means the total credit is capped by your tax liability as well.  

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