Home Energy Credit - Furnace 2023 Requirements

[bohueilin]

Dear Community, 

I am wondering on the Home Energy Credit for furnace,  what's the requirements for 2023?  

Reference: https://www.carrier.com/residential/en/us/homeowner-resources/federal-tax-credits/#:~:text=Tax%20Sec.... 

Where 2023 stated that the requirement: ≥97% AFUE

Question:

Does anyone know if a furnace of: ≥96.5% is eligible for 2023 Tax Reason?? (up to Tax Credit Amount:  $600)

Thanks

[DMarkM1 · Accepted solution]

Yes, according to the IRS Fact Sheet 2022-40 here, and extracted below, furnaces must meet the highest CEE tier (not advanced).  

Also click here to download/view the efficiency tables for furnaces from the CEE effective January 2021.  The highest tier for a gas-fired furnace is Tier 3 which is an Annual Fuel Utilization Efficiency of > 97%.  

Electric or natural gas heat pumps, electric or natural gas heat pump water heaters, central air conditioners, natural gas or propane or oil water heaters, natural gas or propane or oil furnaces or hot water boilers: must meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency (CEE) that is in effect as of the beginning of the year in which the property is placed in service. See also the CEE Directory of Efficient Equipment for a searchable database of qualifying equipment.

[bohueilin]

Thank you so much DMarkM1!

Basic questions:

1.) I am looking at an Gas Furnace (Bryant) that has *AFUE EFFICIENCY :Up to 96.5%*, this sounds like it does NOT meet the Tier 3 requirements? Or is 96.5% considered as 97% with round up? lol'

Link: https://www.bryant.com/en/us/products/gas-furnaces/915s/#productReview

2.) When i was considering for 2022 and tried tonight for tax return, it is *NOT* asking me any details of AFUE EFFICIENCY, i wonder if this specific one i am considering qualifies for tax credit incentives?

Link: https://www.bryant.com/en/us/products/gas-furnaces/915s/#productReview

I was searching on the CEE site and need to confirm my Bryant model number to be sure...:

https://www.ahridirectory.org/NewSearch?programId=64&searchTypeId=4

Thanks

[DMarkM1]

No.  It doesn't round up.  If you use the CEE link and put Bryant in the brand name box and 915S  in model number box, you'll get a list of Bryant models 915S.  Scroll over to the CEE Tier Column and see that none are Tier 3; confirming it does not round up. 

I remind you this is 2023 standards.  For 2022 installs  +  95 AFUE was the furnace standard.  Here is link to the 2022 requirements.