SoCalGas - Federal Residential Energy Tax Credits
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Federal Residential Energy Tax Credits

Retroactive tax credits for natural gas heating and hot water systems

The American Taxpayer Relief Act of 2012, which Congress passed in early January, retroactively re-instated the federal residential energy tax credit that had previously expired.

Qualifying natural gas heating or hot water systems installed in your primary residence in 2012 or 2013 may be eligible for a tax credit up to $300. Your credit could be less if you already claimed $500 in federal energy tax credits in previous years (since 2006).

Natural gas equipment Maximum value of credit Eligibility criteria1
Natural gas furnace or hot water boiler $150 Annual fuel utilization efficiency (AFUE) rate not less than 95.
Natural gas water heater $300 Energy factor of at least 0.82 or a thermal efficiency rating of at least 90 percent.

1 Your contractor or the manufacturer should be able to provide written manufacturer’s certification that your natural gas heating or hot water system meets eligibility criteria.

Discuss with a tax advisor

  • Whether your natural gas equipment qualifies under Internal Revenue Service rules
  • Whether you claimed federal residential energy tax credits in previous years that could reduce or eliminate your eligibility

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Gravity Wall Furnace

Learn More

Federal tax credits are available for consumer energy efficiency projects. Visit the ENERGY STAR® website* for a list of products and how to apply.