Home energy credit for air conditioners - Turbo Tax max at $600, should be $1200?

[sharpnado]

Per the IRS publication below, the max credit should be $1200.  However, when I enter in Turbo Tax, it maxes out the credit at $600.   I installed 2 x air conditioners and should be eligible for $600 each, up to $1200.  I don't see any way to enter the number of units installed, only the total cost.

Home energy tax credits | Internal Revenue Service (irs.gov)

[Vanessa A]

No.  The max credit is $600 for AC, not per AC unit.  So, it doesn't matter if you installed one or 5, your credit is limited to $600 for Air Conditioners. 

To get the $1,200, you would need to have done other things as well like windows, doors or insulation.  

The overall Home Energy Efficiency Improvement Credit is limited to $1,200 for all items but the biomass boilers or furnaces.  These two items allow you to claim an additional $2,000 for the Home Energy Efficiency Improvement Credit.  

[sharpnado]

Thanks for the reply.

From the IRS pub, this is what I am reading.  The bold line shows that it should be 30% of the cost, up to a maximum of $1200.    So, I'm still a bit confused how you are getting $600.

======Pasted From the IRS Link=====

These expenses may qualify:

• Exterior doors, windows, skylights and insulation materials
• Central air conditioners, water heaters, furnaces, boilers and heat pumps
• Biomass stoves and boilers
• Home energy audits

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022: 30%, up to a lifetime maximum of $500
• 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit

[sharpnado]

To clarify, I read it as 30% of the cost of improvements in those areas, not $600 per item type.

Trying to find where the $600 maximum is listed.

[DoninGA]

@sharpnado   IRS Form 5695 Residential Energy Credits instructions (2023) page 3 - https://www.irs.gov/pub/irs-pdf/i5695.pdf#page=3

The credit limit for each property is as follows.
• $1,200 for insulation or air sealing material system.
• $250 for one exterior door and $500 for all exterior doors.
• $600 for windows.
• $600 for central air conditioners.
• $600 for natural gas, propane, or oil water heaters.
• $600 for natural gas, propane, or oil furnace or hot water boilers.
• $600 for improvements or replacements of panelboards,
subpanelboards, branch circuits, or feeders.
• $150 for home energy audits.
• $2,000 for heat pumps and heat pump water heaters; biomass
stoves and biomass boilers

[sharpnado]

Thank, I just saw that as well.

Efficient air conditioners*

$300

30% of cost, up to $600

Appreciate the input!

[Vanessa A]

 It is 30% of the cost of the improvement with a $600 maximum credit for central air conditioners. 

One more thing.  You say 2 air conditioners.  Are these central air units or window units?  Window units do not qualify for the credit.  

[sharpnado]

Thanks Vanessa, I found the $600 limit on the energy.gov page.  

These were central units, not window. 

Appreciate the quick help!