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HAPMIP74
New Member

Paid $16,225 for a 22 sheer high efficiency ac was told would get $2,000 tax credit but line 22b form 5695 only shows $600 does anyone know why if I can c.o. to 2024?

Why on form 5695 line 22b I'm only getting $600 when my AC is eligible for a $2000 credit according to AHRI
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1 Reply
LindaS5247
Expert Alumni

Paid $16,225 for a 22 sheer high efficiency ac was told would get $2,000 tax credit but line 22b form 5695 only shows $600 does anyone know why if I can c.o. to 2024?

The tax credit for air conditioning is $600.

Click here for information on Energy Tax Credits.  Per this guide:

 

Which home improvements qualify for the Energy Efficient Home Improvement Credit?

Beginning January 1, 2023, the credit becomes equal to the lesser of 30% of the sum of amounts paid for qualifying home improvements or the annual $1,200 credit limit. In addition the the aggregate $1,200 limit, annual dollar credit limits apply to specific items including:

  • Home energy audits: $150
  • Exterior doors: $250 per door (up to $500 per year)
  • Exterior windows and skylights; central A/C units, electric panels and related equipment; natural gas, propane and oil water heaters, furnaces or hot water boilers: $600

 

Click here for additional information on Energy-Efficient Home Improvements.  Per this IRS guidance:

 

Residential energy property:

Residential energy property that meets the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier in effect at the beginning of the year when the property is installed qualifies for a credit up to $600 per item. Costs may include labor for installation.

Qualified property includes new:

  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Natural gas, propane, or oil furnaces and hot water boilers

 

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