jremington:
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DC only on the input pins, 0-5V.
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A transistor cannot be used to switch AC power. You will need a relay, either SSR or electromechanical. In the latter case, you will need a transistor to switch the relay coil and a flyback diode across that coil.
For more informed advice, post a link to the data sheets or product pages of the sensors.
Thank you for your response. I am not so good with the Electric side of things yet so thank you for explaining that.
The sensors in question are similar to these:
https://www.bannerengineering.com/us/en/products/part.26185.html
I would have them converted to DC but that would obviously be very costly as our machines run 8 to 9 per machine. A cheaper alternative would be preferred for now.
TomGeorge:
Hi,
Welcome to the forum.
Please read the first post in any forum entitled how to use this forum.
http://forum.arduino.cc/index.php/topic,148850.0.html
We need you to provide s with links/data on these AC sensors.
What are you trying to do with the AC sensors and control with the arduino controller?
Can you tell us your electronics, programming, arduino, hardware experience?
Thanks.. Tom... 
Thanks, its quite a helpful community and i'm glad to be a part of it. I've never really played with micro-controllers in my programming days so this is a very nice beginning to a new era for me. I quoted a link to a sensor thats very similar to the one we use. They do "require" 24V, I did try to run one on a lower amount but it didn't give very good results. Our machines do have quite a bit of 24V solenoids, and other parts that do need 24V so stepping down the power to just run 5V isn't much of an option.
What I intend to use the Arduino for is to listen for signals from these sensors then send signals depending on different variables along with "safety checks". I have my code written although its a bit "unorganized" I do believe it will give us a basis to work with. After researching more for a few days I did see a few little things that might help from SparkFun.com but a more simple design would be helpful.
I have very little electronics experience, I've rewired parts of our machines and worked with simple stuff like running conduit and setting up receptacles but as far as circuitry i'm fair to say i'm very much an amateur. I do have programming experience in a few languages, i've tinkerd with C++ in the past so this is helping me kinda clean off the cob webs of what i've done before. I hope this information helps and I do appreciate all responses to my posts.
DrDiettrich:
How are your sensors related to 24V AC? Are they powered by 24V AC, or do they measure 24V AC, or how else?
To my knowledge they are powered by 24V AND they relay that 24V power over when something is passed by them. I'm not 100% on that but fairly sure.