How to Receive a Tax Credit for Natural Gas Furnaces
If you need a new furnace, check out the energy-efficient options available. These models use energy more efficiently and will reduce your energy bill. Natural-gas furnaces are one of the many home-heating options available, and choosing a natural-gas furnace may provide you with extra savings under U.S. tax laws, because the government has a tax-credit program that encourages homeowners to invest in energy-saving products. The American Recovery and Reinvestment Act of 2009 offers tax credits of up to 30 percent of the total cost of new energy-efficient products, up to a maximum of $1,500. For example, a unit that costs $2,000 will be eligible for a $600 tax credit. Any unit exceeding $5,000 is subject to the maximum tax credit of $1,500.
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Instructions
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Review the energy-efficient tax-credit savings available before purchasing a natural-gas furnace. If you are deciding between an energy-efficient model and a standard model based on cost, choosing the correct energy-efficient model can save you more money.
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Choose a natural gas furnace that meets the energy-efficient requirements outlined by the U.S. government. To qualify, a natural-gas furnace must have annual fuel usage efficiency above 95 percent. The higher the AFUE, the more efficient the natural gas furnace will be. The Gas Appliance Manufacturers Association provides information on hundreds of natural gas furnace models and their corresponding AFUE.
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Purchase and install your new energy-efficient central natural-gas furnace, and save all receipts and records.
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Save the Manufacturer's Certification Statement, this should be included with your purchase. The Internal Revenue Service doesn't require the certificate to be filed with taxes, but it ensures you have purchased the correct product to qualify for the tax credit.
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File for tax rebate using the proper form when you file your federal income tax return.
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Tips & Warnings
This energy tax credit replaces previous tax credits allowable as set in the Energy Policy Act of 2005, which limited the energy efficient tax credit to a maximum of $500.
Consult a tax professional to receive the most up-to-date tax information.
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