What are the specifics of the new tax credit for Central Air installation after January 1, 2023?
02405
2 Replies
OmM1
Employee Finance Expert
Sep 28, 2022 3:09:10 PM
Hello ira24601,
The central air installation should meet the ENERGYSTAR ratings and the credit is limited 30% with an overall limit of $600.
Hope this is helpful.
Thanks again,
MariaDG
Employee Tax Expert
Sep 28, 2022 3:13:59 PM
You can claim up to 30% of the purchase price of each energy efficient home improvement, but not more than the limit for each type of equipment. The limit for an air conditioner is $600. However, there is also an annual total limit of $1200 per year. So if you want to plan your home improvements, you can take advantage of this credit for several years! Here's a great article with details on the limits.