Premium efficiency furnaces and air handlers can reduce your home energy costs and improve comfort. Installation of these systems does not require a Department of Energy approved tax credit technician. Be sure the system you install meets the eligibility requirements for each technology below.
Forced Air Furnaces
Furnaces installed between January 1, 2012 and January 1, 2013 qualify for a tax credit of up to $350.
For installations beginning in 2013, use the charts below to calculate the tax credit based on the year the equipment was installed.
All installations must meet the following minimum requirements:
- Have an Annual Fuel Utilization Efficiency (AFUE) of 95 percent or higher.
- Has an electrically-efficient fan motor - listed in the Air Conditioning, Heating, and Refrigeration Institute (AHRI) with the "e" symbol. These are typically marketed as "variable speed" blowers. Multi-speed and single speed motors are not electrically efficient.
- System must be installed with ducted outdoor air for combustion. Models that can be installed using either inside or outside combustion air should indicate on the final invoice that the installation was outside combustion air ("two-pipe"), including furnaces installed in garages.
Newer qualifying models may be released and listed in the AHRI directory. Look for the "e" on the certificate after choosing "AFUE/AMACF" from the "Eligible for Federal Tax Credit" drop-down menu on the lower right section of this page:
Note: in "dual fuel" or "hybrid" systems with a gas furnace installed as a backup to a heat pump, only the primary heating system will be eligible for a tax credit.
Hydronic Air Handler
An air handler qualifies for up to a $125 tax credit if it meets the following minimum requirements:
- Installed as part of a hydronic space heating system (i.e. with a tankless water heater as heat source)
We do not maintain a list of qualifying hydronic air handlers. Please have your contractor provide you a manufacturers specification sheet indicating the hydronic air handler you installed has an electrically commutated permanent magnet motor.
Space and Water Heating Systems
Premium efficiency combination space and water heating systems consist of a qualifying premium efficiency water heater that serves both the domestic hot water needs and provides space heat through a coil in an air handler, or directly through hydronic baseboard heaters or in-floor radiant heat.
If a premium efficiency water heater is the source of heat, apply for the tax credit on the basis of the efficiency of the water heater.
If a premium efficiency air handler is installed to distribute the heat via forced air, as part of a space and water heating system, a separate tax credit is possible for qualifying air handlers.