Does my installed energy-efficient air conditioning and heating unit qualify for tax credit?

If you made energy-efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you may be able to claim the  Energy Efficient Home Improvement Credit for 30% of amounts paid for qualified energy efficiency improvements, up to an annual cap of $1,200, or fixed-dollar amounts ranging from $150 to $600 for energy-efficient property, including:

• Central air conditioners
• Water heaters
• Home energy audits
• Doors and windows

This tax credit is effective for products purchased and installed between January 1, 2023, and December 31, 2032.

Under the tax code, eligible equipment must “meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year.”  The eligibility described above is consistent with this requirement.

 

You claim the credit on form 5695 Residential Energy Credits. Include the costs for labor, assembly, preparation, or installation.

 

In TurboTax :

1. Open or continue your return, if you don't already have it open.
2. Select the Deductions & Credits tab.
3. Find the Your Home section.
4. Select the Start/Revisit button for Home Energy Credits.
5. On the Energy-Saving Home Improvements screen, answer Yes and Continue. Follow the instructions on the next screens.
   • The first part of the interview covers improvements like doors, windows, furnace, air conditioning, and heat pumps.