Federal Tax Credits
Must be placed in service in an existing home
which is your principal residence by December 31, 2022.
New construction and rentals do not apply.
Propane Water Heater Credit: $300
Propane Furnace Credit: $150
Propane Water Heater Credit:
Certain ENERGY STAR certified gas water heaters meet the requirements for this tax credit. Water heaters account for 12% of the energy consumed in your home.
Form 5695 Instructions: https://www.irs.gov/pub/irs-pdf/i5695.pdf
Form 5695: https://www.irs.gov/pub/irs-pdf/f5695.pdf
Requirements:
Uniform Energy Factor (UEF) >= 0.82 OR a thermal efficiency of at least 90%.
*A water heater’s UEF rating is a measure of its energy efficiency, with higher numbers denoting more efficient units. The UEF calculation is based off of how much energy the water heater uses and how much energy is used to power the water heater itself.
Propane Furnace Credit:
Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the requirements of the fan tax credit.
Form 5695 Instructions: https://www.irs.gov/pub/irs-pdf/i5695.pdf
Form 5695: https://www.irs.gov/pub/irs-pdf/f5695.pdf
Requirements:
AFUE >= 95
*AFUE, or Annual Fuel Utilization Efficiency, measures how efficiently a furnace converts fuel to heat. The higher the AFUE rating, the more energy-efficient the system and the more heat entering your home.