How to Tell If My Furnace Qualifies for the Tax Credit

Only energy-efficient furnaces are eligible for the tax credit.

Adding energy-efficient appliances to your home can help you save some money on your taxes. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended 2009 tax credits for energy efficient appliances, but the Act decreased the credit levels. The tax credits of up to $1,500 expired on December 31, 2010. New oil, natural gas or propane furnaces may qualify for a tax credit of up to $150 for 2011 taxes. To find out if your furnace qualifies for the tax credit, you must look at the paperwork you received from the installer.

Things You'll Need

• Certificate from furnace manufacturer

Instructions

1. Find the manufacturer's certification statement that the installer gave you when the furnace was installed, if you were given one. This paper from the manufacturer says whether your furnace qualifies for the tax credit.

2. Contact the manufacturer for a copy of the certificate if you can't find your original copy. Another option is to download it from the manufacturer's website. Look on your furnace to find the brand name and the model of your furnace if you don't know them.

3. Look on other paperwork given to you when you had the furnace installed. Look for energy specifications or ratings in the owner's manual, for example, which tells whether the unit meets or exceeds an annual fuel utilization efficiency (AFUE) rating of 95. The AFUE is a measure of how efficient gas heating equipment is. You might also look on the furnace itself to see if information on its AFUE rating is listed.

Tips & Warnings

• Keep copies of your receipt, and the certification statement from the manufacturer when you file your taxes, in case the IRS requests copies of them. File Form 5695 to receive your tax credit when you file taxes.

• Your furnace must have been installed and put into service in 2011 to qualify for the tax credit.

References

• Energy Star: Have the Tax Credits Been Extended for 2011?
• Energy Star: How Do I Apply for the Tax Credit? What Tax Form Do I Need for the Energy Efficiency Tax Credits?
• Energy Star: What is a Manufacturer's Certification Statement?
• Energy Star: 2011 Federal Tax Credits for Consumer Energy Efficiency