Tax law changes
Use Form 5695 to figure out and take their residential energy credits.
Login to your account
- Select Federal from the left menu.
- Go to Deductions and Credits.
- Scroll down to Your Home and click shown more.
- Click start next to Home Energy Credits
The AC unit would be entered in the Energy-Efficient Building Property section.
From the IRS:
Q2. Are the credits refundable or nonrefundable? (added December 22, 2022) A2. Both the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit are nonrefundable personal tax credits. A taxpayer claiming a nonrefundable credit can only use it to decrease or eliminate tax liability. A taxpayer will not receive a tax refund for any amount that exceeds the taxpayer’s tax liability for the year.
