DMarkM1
Expert Alumni

Deductions & credits

Yes.  New furnaces are on the list as a "qualified" Residential Energy Property.  Use the "Water boilers" item.  If you click the "Learn more" on that item you will see the furnace listed.  Below is the IRS reference extracted as well.

 

"Residential energy property that meets the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed qualifies for a credit up to $600 per item. Costs may include labor for installation.

Qualified property includes new:

  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Natural gas, propane, or oil furnaces and hot water boilers"
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