energy tax credits heater/air conditioner

[M023ab]

 hi-

           i had a new heater and air conditioner installed july 2023. replacement units for older units.

 i printed off the listings for each item off the manufacturer's website,which shows whether a unit qualifies for

a tax credit by model number.............the air conditioner qualifies,heater does not.  as you know,both units run together when the air conditioner is in use........question-    for the pricing i paid for air conditioner,it is eligible for  a $600 tax credit.            can i claim this credit for the air conditioner,even if the heater does not qualify??

            thank you,m

[AmyC]

Yes, you have a qualifying component and are eligible. See Energystar, a government agency with details for every year and credit.

[Opus 17]

Under the law, a furnace has a separate credit (and is listed on a different line on the tax form) than an air conditioner.  So if they both qualified, you would list them on two different lines and claim both credits.  Since only one qualifies, you can claim that credit.  You will need to know the cost just of the A/C unit, if you only have one price, you need to make a "reasonable allocation" and be able to defend it if questioned. 

[wdavewilson]

We listed both credits separately and also have a credit for purchasing new windows.  That credit is another 600 dollars.  When we put all of that in the home energy credit is 1200 instead of the 1800 we think it should be.  Where are we wrong?

[Opus 17]

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@wdavewilson wrote:

We listed both credits separately and also have a credit for purchasing new windows.  That credit is another 600 dollars.  When we put all of that in the home energy credit is 1200 instead of the 1800 we think it should be.  Where are we wrong?

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If you only owe $1200 in taxes, these credits can only reduce your taxes, not give you an extra refund.

Or, you would need to print your return and look at form 5695, and see what is missing.  If you are using Turbotax online, you have to pay the filing fee before you can print, but you can pay the fee and then go back to review your return, and file it later.  If you are using the desktop program, switch to forms mode.

Be aware that Turbotax has separate entries for air conditioner and furnace.  (Some versions of the program have accidentally deleted the word "furnace", a furnace should be entered in the box that includes "boiler".)

Also, the credit for furnace and a/c can be for property installed on any dwelling that you use as a residence, but the window credit can only be claimed on a home you use as your main residence.  You may need to go though the interview and double check your answers.