Can I get credit for new hot water furnace

The manufacturer can tell you whether a particular item meets the standards for the Nonbusiness Energy Property Credit.

 Residential energy property costs include:

• Natural gas, propane or oil furnaces,
• Natural gas, propane or oil hot water boilers,
• Advanced circulating fans for natural gas, propane or oil furnaces.

You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

• The maximum tax credit for a furnace circulating fan is $50.
• The maximum credit for a furnace or boiler is $150.
• The maximum credit for any other single residential energy property cost is $300.

Related information: Where do I enter qualified energy-saving improvements?