Federal Tax Credit on Furnaces and Boilers

A reminder that there is a 30% upto $1500 Federal Tax Credit on Qualifying Furnaces and Boilers. If you have been thinking about replacing these items, you might as well upgrade now and save some money. Furnaces 15 years old or older can be replaced with much more efficient units. New models with electric ignition are the most efficient models.

Natural Gas or Propane Furnaces must have Annual Fuel Utilization Efficiency or
AFUE >= 95% to qualify for the tax credit. Oil Furnaces and as, Propane, or Oil Hot Water Boiler must have AFUE >= 90%. Not all ENERGY STAR products will qualify for the tax credit.

Gas fired furnace list. Here is a list of qualifying oil furnaces and oil boilers. Also consider installing radiant floor heating instead of using a furnace.

Energy Star has a store location finder to help you find local dealers.

This credit reduces the amount of tax you owe for 2009. The credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it! Credit details.

Products must have been purchased between January 1, 2009 and December 31, 2010.  Solar water heater purchases are covered through 2016.

The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a qualifying item, then they will have the remaining $600 rebate available for purchases of additional energy saving products in the same tax year.

$1500 seems like the total credit for both 2009 and 2010 combined. Beware that those affected by the Alternative Minimum Tax (AMT) in 2010 may not qualify for the rebate unless Congress passes an AMT patch.

Double dip: Many local utilities provide financial incentives for purchasing ENERGY STAR qualified items. To find out if rebates or other incentives are available in your area, visit the ENERGY STAR Rebate Finder.

Related posts:

1. Federal Tax Credit on Insulation
2. Federal Tax Credit on Energy Efficient Water Heaters
3. Federal Tax Credit on Windows, Doors, Skylights
4. Federal Tax Credit – Wood Heat Stoves, Pellet Stoves, Fireplace Inserts
5. Federal Tax Credit on Geo-Thermal Heat Pump
6. 2010 Solar Federal Tax Credit
7. New 2009 Residential Wind Power Tax Credit
8. Nissan Leaf Electric Car – $7500 Federal Tax Savings

Posted on September 2nd, 2010
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