What are qualified costs for Central Air Conditioners?

Qualified costs generally include:

• The purchase price of the central air conditioning unit that meets the IRS and Department of Energy efficiency requirements.
• Labor costs for onsite preparation, assembly, or installation. For example, setting up the unit, connecting it to your home's ductwork, and ensuring it operates properly.
• Necessary piping, wiring, and related materials directly used in the installation.

To qualify for the credit:

• The central air conditioner must be installed in your principal residence in the United States.
• It must be produced by a manufacturer that is qualified and listed with the IRS.
• It must meet specific energy efficiency standards . For example, a Seasonal Energy Efficiency Ratio (SEER2) and Energy Efficiency Ratio (EER2) that meet or exceed the IRS's required thresholds.
• The installation must be completed and placed in service during the tax year for which you are claiming the credit.

What if I received a subsidy?