heat air using electricity, natural gas, or other fuel, and distribute the heated air throughout a home using ductwork. Upgrading to a premium efficiency furnace can save energy and money.
A furnace is rated by its Annual Fuel Utilization Efficiency (AFUE) score. The AFUE measures how efficiently a furnace uses its fuel. For example, an AFUE of 95 percent means that 95 percent of the energy in the furnace's fuel becomes heat for the home (the other 5 percent escapes up the chimney or elsewhere).
Certain premium efficiency furnaces installed in your
Oregon home may be eligible for a Residential Energy Tax Credit.
An installed premium efficiency furnace must meet certain qualifications to earn a Residential Energy Tax Credit, valued at 50 percent of the cost of the device, up to $492. See the RETC Rate Chart for more information.
Complete qualifications and instructions are outlined in the RETC Application.
Qualified furnaces must:
- Have an Annual Fuel Utilization Efficiency (AFUE) of 95 percent or higher.
- Be rated an Advanced Main Air Circulating Fan, marked "e" by the AHRI (see below).
- Be installed with ducted outdoor air for combustion.
To see if your model qualifies, search for your furnace in the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) Directory. Enter information such as model and manufacturer to produce a list of matches. Find your model to make sure it has a value of 95.0 or higher listed under the AFUE column, and is marked "AFUE & AMACF" under the Eligible for Federal Tax Credit column. Double-click on the row to open and print a copy of the "AHRI Certificate of Product Rating."
RETC Program Sunset
To qualify for a tax credit:
- RETC devices must be purchased by December 31, 2017;
- Devices must be operational by April 1, 2018; and
- ODOE must receive your application no later than June 1, 2018.
If you plan to transfer your tax credit, ODOE must receive the pass-through application on or before June 1, 2018. Please review the RETC Administrative Rules
for more information about program eligibility and requirements.
Complete the RETC Application, including utility and furnace model information, and mail it to the Oregon Department of Energy with a copy of the AHRI Certificate of Product Rating. Be sure to include your itemized invoice showing the full model number, device and materials cost (minus permits and labor), and the total cost of the job.
(instructions and application)