federal tax credits and how to apply

[Romular]

i installed a new central A/C with Heat Pump and a Combi boiler and on demand water heater at a cost of $24,542.00 how do i apply this credit? i am trying to do my taxes using the downloaded Turbo Tax Deluxe.

[DMarkM1]

The maximum Energy Efficient Home Improvement credit you can claim in a year is $3200.  For the central AC, water heater and boiler you can get 30% of the costs up to $600 each but that is capped at a maximum total credit of $1200.  So the cost for each (or at least 2) of those components (labor, preparation, assembly and item) if over $2000 each will get you the maximum $1200 credit.  

You can also get a credit for 30% of the cost of the heat pump up to $2000.  So if the cost of that component is over $7000 you will get the maximum $2000 credit.  

Keep in mind these are non-refundable credits. That means the total credit is capped by your tax liability as well.  

[Romular]

thank you. how about applying the heating and cooling credit for NYS? how do i apply that because i don't any option to add this.

[MayaD]

For the Heating and Colling credit:

1. Open your NY return and continue to the screen Take a Look at NY Credits and Taxes.
2. Scroll down to Other Taxes Credits. 
3. Click Start next to Clean Heating Fuel Credit. 

The clean heating fuel credit is available to taxpayers for the purchase of bioheating fuel during 2023 that is used for space heating or hot water production for residential purposes within New York State.