Scott Brothers NC: Boone air conditioner repair, furnace repair and geothermal specialists
A homeowner may use the entire $1500 in tax credits for installing a single appliance, such as a qualified furnace, air conditioner, heat pump or hot water heater. If the home owner does not use all of the $1500 they can "bank" the remaining available tax credit for other qualified improvements.
What's the difference between a tax credit and a tax deduction?
As a tax credit applies against the taxpayers' liability. A tax deduction applies against a taxpayer's income. lowering the adjusted gross income and possibly moving the taxpayer to a lower tax bracket. Tax credits have a greater benefit to a taxpayer.