Energy Credits

[sarhale]

I purchased windows and doors which qualify for an $1100 tax credit ($500 for doors and $600 for windows). I also purchased a new AC and furnace which qualify for a $1200 tax credit. Combined that's $3100. The max limit is $3200. When I enter this info it says I qualify for $1200. I. tried entering only doors and windows which shows $1100 and only ac and furnace which shows $1200. Those are both correct. But when I enter all of the info it only shows $1200. Any ideas why it is not showing the $3100? So far I owe over $5000 so it's not because I'm getting a refund.

[MindyB]

Yes, the sum of the credits without limitation would be $2,300 ($600+$500+$1,200).

Next, there is a maximum credit per year.  According to the IRS, the maximum credit you can claim each year is:

• "$1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150)
• $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers"

Windows, doors, air conditioning, and furnaces are energy efficient property costs and certain energy efficient home improvements subject to a total maximum of $1,200.

[sarhale]

Ok, wow! I've been staring at a screen too long. Yes, I meant $2300. I guess we misunderstood the way you can combine things. We had a schedule with a company on our home improvements to spread them out to maximize credits. Solar, batteries, water heater one year, ac/furnace combined with doors and windows the next, insulation and energy audit the next. Looks like we were given incorrect info about combining ac/furnace and doors/windows in the same year. Thanks for the info.

[sarhale]

So it’s not an ac and furnace I need to claim. It’s a heat pump system that’s a $2000 credit in addition to the $1200 energy credit. That’s where I got the $3100 from ($2000 plus the $1100 for windows/doors). I was confusing the $2000 heat pump credit with the two $600 credits for ac/furnace. I did not see the option to claim a heat pump when going through the energy credits but I’ll look again. Thank you for your response b/c it made me realize what I was doing wrong.