Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Mar 5, 2024 6:13:46 AM

If I upgrade my A/C and add a heat pump to the system, can I deduct separately for a heat pump and a A/C. Turbo tax has two lines one for heat pump only and A/C only.

The heat pump credit is $2000 and the A/C is 30%. The system installed is combined a/c and heat pump, the out of pocket cost was 29,000

0 1 156
1 Replies
Expert Alumni
Mar 5, 2024 6:35:54 AM

Yes.  You can take a credit for the heat pump and a separate credit for the AC.  You will just need an itemized invoice showing the cost you paid for each so you can enter the actual cost you paid for each, not an estimate.  The maximum credit for the AC is $600.  So your total possible credit is $2,600. 

 

The Home Improvement Energy Efficient Credit is a  non-refundable credit

  • Worth up to 30% of costs with a maximum credit $2,000 for
    • Air source heat pumps
    • Heat Pump Water Heaters
    • Biomass Stoves or Boilers
  • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
    • Doors, Windows and Skylights
    • Insulation
    • Natural Gas, Oil Propane Water Heaters
    • Furnaces
    • Boilers
    • Central Air Conditioners ($600 maximum Credit)
    • Electrical Panel Upgrades
    • Home Energy Audit (up to $150)
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
  • NOT available for new construction.