$2000 credit for qualified Heat Pump, but TT is making it $600 - SOLVED (user error - a "Heat Pump" is not an "Air Conditioner"

[non sequitur]

I installed a heat pump in 2024, and ensured it was a 'matched system' (in technical terms) to ensure it qualified for the full federal tax credit. Additionally, the quote I was given by the installer cited the $2,000 amount of the credit in calculating my 'net cost' for the system. Thirdly, I reviewed this IRS page, which reaffirms the $2,000 amount: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit.

Because of this, I was upset when I checked the box for 'air conditioner' and was told the maximum credit was $600. After going through this section a few times I realized: I'd checked the wrong box. My system is a "heat pump" and after checking that box (not 'air conditioning') the $2000 credit applied.

Lesson to others: if you're not used to referring to your A/C as a 'heat pump' like me, you may check the wrong box, but to get that extra $1400 in your pocket (the $2000 instead of $600), make sure you check the right box!

[MindyB]

Yes, that is correct and thank you for the feedback. 

Here are the steps to find how to do this for anyone else who may run into this issue:

1. Upon opening TurboTax, choose Deductions & Credits

2. Locate Your Home 

3. Start/Revisit Home Energy Credits

4. On the Energy Efficient Home Improvements screen, select Yes then Continue. 

5. Answer the next few questions until you get to Did you have any of these residential energy property costs in 2024? Heat pumps are listed here.  Select Yes and continue.

6. Make sure you enter the total cost and answer the questions about ownership and location of the home.