Energy Tax Credit

[lawrencejbauman]

I purchased a new central heating and air system in May 2023 for my home residence.  However, only the air conditioner qualifies for the federal energy tax credit.  I paid a flat amount for the two systems combined and the company i bought it from didn't separate the costs between the two units.  Should I divide the total costs by 2 and use that on IRS form 5695?  

[DoninGA]

You could split the cost and then get a credit for the A/C unit and a credit for the furnace.  However, since the cost of the HVAC was not broken down by unit, if the IRS ever questions either credit you will not have proof of the cost for each.

I have the same issue as I replaced by HVAC in 2023 and the unit is eligible for the credit.  But I only entered the total cost as an A/C unit since I did not have any paperwork to show separate costs.  That was my decision.

[lawrencejbauman]

As noted in my original post, only the air conditioning unit qualified for the energy tax credit.  Therefore, my thought was to divide the total heating and air conditioning cost by 2 (since they weren't split on the invoice) and show that amount for the air conditioning unit on IRS form 5695.  Does that make sense? 

[AnnetteB6]

Instead of dividing the total cost in half and claiming half as the cost of the air conditioning unit, try contacting the company who installed the system and ask them for a breakdown of the cost between the two systems.  A 50/50 split may or may not be appropriate.  If possible, get the information in writing so that you will have documentation if the IRS ever questions your credit.  

@lawrencejbauman 

[lawrencejbauman]

Thank you for your response.  I did contact the company first thing and they told me that they couldn't break it down for me and suggested that I consult my tax professional.  Since I use turbotax, I decided to reach out to the community for their suggestions, as well as, contact the IRS.  However, it appears that the IRS no longer has a help call in number.  

[DawnC]

There are help lines and other ways to contact the IRS.   Scroll down this list to see all of your contact options.   

[AmeliesUncle]

The tax credit for the central air conditioner is maxxed out if your AC costs $2000 or more.  

I can't imagine that your AC would have cost less than $2000, so unless you have reason to believe it cost less than that, just go ahead and enter $2000.