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Deductions & credits

Yes, your natural gas boiler furnace does qualify, if it meet the standards. The manufacturer should have that information. The maximum credit for a furnace or boiler is $150. Click here to read more: Energy Tax Credit: Which Home Improvements Qualify? The credit was expiring Dec 31, 2016 until the H.R. 1892 - Bipartisan Budget Act of 2018 extended the credit to Dec 31, 


(a) In General.—Section 25C(g)(2) is amended by striking “December 31, 2016” and inserting “December 31, 2017”.

(b) Effective Date.—The amendment made by this section shall apply to property placed in service after December 31, 2016".

Equipment and materials can qualify for the Non business Energy Property Credit only if they meet technical efficiency standards set by the Department of Energy. The manufacturer can tell you whether a particular item meets those standards. For this credit, the IRS distinguishes between two kinds of upgrades.

The first is "qualified energy efficiency improvements," and it includes the following:
  • Home insulation
  • Exterior doors
  • Exterior windows and skylights
  • Certain roofing materials
The second category is "residential energy property costs." It includes:
  • Electric heat pumps
  • Electric heat pump water heaters
  • Central air conditioning systems
  • Natural gas, propane or oil water heaters
  • Stoves that use biomass fuel
  • Natural gas, propane or oil furnaces
  • Natural gas, propane or oil hot water boilers
  • Advanced circulating fans for natural gas, propane or oil furnaces
Details of nonbusiness tax credit

You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. However, significant limits apply:

  • This credit is worth a maximum of $500 for all years combined, from 2006 to the present.
  • Of that combined $500 limit, a maximum of $200 can be for windows.
  • 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.
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