Energy Efficient Central Air Conditioner Tax Credit

Your central air conditioning unit may qualify for an energy credit if it meets the energy efficiency requirements you ll enter the cost of the cac under how much did you pay for energy saving improvements as an energy efficient building property.

Energy efficient central air conditioner tax credit.

Advanced main air circulating fan. Through the 2020 tax year the federal government offers the nonbusiness energy property credit. Taxpayers who upgrade their homes to make use of renewable energy may be eligible for a tax credit to offset some of the costs. Air conditioners recognized as energy star most efficient meet the requirements for this tax credit.

To verify tax credit eligibility ask your hvac contractor to provide the manufacturer certification statement for the equipment you plan to purchase. Heating ventilating air conditioning hvac as much as half of the energy used in your home goes to heating and cooling. Qualified improvements include adding insulation energy efficient exterior windows and doors and certain roofs. Click the screenshot below for reference to enter your energy efficient property in turbotax.

The renewable energy tax credits are good through 2019 and then are reduced each year through the end of 2021. The criteria for qualifying for that tax credit is that the system must meet certain energy efficiency guidelines. Qualifying air conditioning systems having the opportunity to claim a tax credit on your taxes when you install a qualifying air conditioning system is a great way to reduce the cost of this large investment. Do not include the cost to install these items.

Claim the credits by filing form 5695 with your tax return.