Home Energy credit question

java
java Member Posts: 1 Newcomer
in Credits/Deductions

My house has 2 furnaces and I replaced both of them in 2025 with an energy efficient furnace.

Am I able to claim $1200 or is the freetaxusa filing service correct by only giving me $600 credit?

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Best Answer

  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent Posts: 109 image
    Answer ✓
    Hello java,

    Our software is correct. The $600 limit for furnaces under the Energy Efficient Home Improvement Credit is a category cap, not a per-unit limit. It does not matter how many furnaces were installed — the credit for furnaces is capped at $600 total for the year per home, regardless of the number of units.

    To reach the full $1,200 annual maximum, you would need to combine the furnace credit with other qualifying improvements, such as energy-efficient windows, doors, or insulation. You can find more details on the IRS credit limits here: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

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