2025 Home Energy Credit for Central Air Conditioning system

[Aussie]

I have a 2-part question regarding the installation of new air conditioner that meets the 2025 energy requirements. 

1) Does the $600 max credit apply to 2nd homes?

2) If the $600 credit can't be applied in 2025 due to the amount reflected on 1040 line 18, can the credit be carried forward to 2026?

[MindyB · Accepted solution]

1)Yes. Central air conditioning on a personal‑use second home in the U.S. can qualify for the credit. It does not have to be your principal residence. A second home you use personally (no rental/business use) qualifies. 

2) No. The energy‑efficient home improvement credit  is nonrefundable and cannot be carried forward.