Tax Credits & Rebates: Can You Save on a 92% AFUE Furnace in 2025?

👋 Introduction — Mark’s Search for Hidden Savings

When Mark upgraded to a Goodman GR9S920603BN, a 92% AFUE natural gas furnace, he knew he was getting efficiency, comfort, and reliability. But as he reviewed the receipt later that night, another question popped into his head:

“Wait — does this thing qualify for a tax credit?”

After all, every homeowner loves a good deal. Between inflation, energy prices, and home maintenance costs, every dollar saved counts. And with all the talk about the Inflation Reduction Act, Mark wanted to know if his new furnace could help him score a little extra savings come tax season.

The answer, as he discovered, depends on more than just the furnace’s brand name — it’s about efficiency thresholds, location, and incentive programs.

This comprehensive guide breaks down everything you need to know about tax credits, rebates, and savings opportunities for 92% AFUE furnaces like the Goodman GR9S920603BN in 2025.

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🧾 1️⃣ Understanding Tax Credits and Rebates

Before diving into the details, it’s important to know what each type of incentive actually means.

💰 Tax Credit:

A tax credit reduces the amount of income tax you owe to the IRS. For example, if you owe $2,000 in federal taxes and claim a $600 furnace credit, you only pay $1,400.

💵 Rebate:

A rebate is a cash-back incentive — typically provided by your state, local utility, or energy provider. You buy the furnace, file a form, and receive a check or bill credit in a few weeks.

🧠 In Short:

• Tax credit = Federal savings when you file taxes.

• Rebate = Local cash-back program after purchase.

Reference: Energy.gov – Tax Credits for Energy Efficiency

“I always thought rebates and credits were the same,” Mark says. “Turns out, they stack — and that’s where the real savings are.”

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🔧 2️⃣ What Makes a Furnace Eligible for a Federal Tax Credit?

In 2025, the Inflation Reduction Act (IRA) continues to support homeowners upgrading to efficient heating and cooling systems. Under this program, you can receive up to $600 in federal tax credits for qualifying ENERGY STAR®-certified gas furnaces.

✅ To qualify, a furnace must:

• Be ENERGY STAR certified

• Achieve at least 97% AFUE efficiency

• Be installed in your primary residence

• Be purchased and installed between 2023–2032

Reference: ENERGY STAR – Furnace Tax Credits 2025

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🚫 3️⃣ Does a 92% AFUE Furnace Qualify?

Here’s the big question Mark wanted answered.

Unfortunately, the Goodman GR9S920603BN, with its 92% AFUE rating, does not meet the current 97% AFUE threshold required for federal furnace tax credits under the IRA.

That doesn’t mean it’s a bad investment — in fact, the GR9S92 remains one of Goodman’s most popular and cost-effective high-efficiency furnaces. It simply falls into a non-qualifying bracket for federal incentives.

“I missed the federal credit by a few points,” Mark says. “But I still saved a bundle on the upfront cost and my monthly gas bill.”

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🌎 4️⃣ Federal Tax Credits: What’s Available in 2025

Even though a 92% furnace doesn’t qualify, it’s worth understanding what does — especially if you’re considering future upgrades.

Reference: Energy.gov – Federal Efficiency Credits

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💸 5️⃣ Local Rebates: The Real Savings Opportunity

Just because the GR9S920603BN doesn’t earn a federal tax credit doesn’t mean you’re out of luck. Many states, utilities, and municipalities offer cash rebates for furnaces that meet or exceed 90% AFUE efficiency.

These rebates vary depending on where you live, but most fall between $150–$400.

Here’s a sample of what’s available:

Reference: DSIREUSA.org – State Incentives Database

“I got a $200 rebate from my utility company,” Mark says. “It didn’t take long — I just uploaded my receipt and AHRI certificate.”

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🧾 6️⃣ Utility Rebates: How They Work

Most utility rebates require you to:

1. Purchase and install a qualifying high-efficiency furnace.

2. Provide proof of purchase (invoice + model/serial number).

3. Submit documentation (AHRI certificate) within 90 days of installation.

4. Receive your check or bill credit within 4–8 weeks.

You can find current rebates for your ZIP code at ENERGY STAR’s Rebate Finder.

“It was easier than I expected,” Mark recalls. “I got my rebate check before my first winter gas bill came in.”

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⚙️ 7️⃣ The Role of ENERGY STAR in Furnace Rebates

ENERGY STAR certification matters because it helps determine eligibility for both federal tax credits and utility incentives.

ENERGY STAR Requirements for Gas Furnaces:

• AFUE ≥ 95% in northern climates

• AFUE ≥ 90% in southern climates

While the Goodman GR9S920603BN (92%) falls slightly below the northern threshold, it still qualifies for many southern-region utility rebates due to its efficiency and sealed combustion design.

Reference: ENERGY STAR – Furnaces Overview

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🔍 8️⃣ How to Check If You Qualify

Mark’s step-by-step method for finding rebates and credits:

🧭 Step 1: Identify your furnace model and AFUE rating.

(For Mark: Goodman GR9S920603BN – 92% AFUE)

🧾 Step 2: Get your AHRI certificate.

Ask your HVAC contractor for this — it’s proof of certified efficiency.

💻 Step 3: Visit EnergyStar.gov/rebate-finder

Enter your ZIP code to see regional incentives.

🧾 Step 4: File your rebate or tax credit forms.

Submit copies of your invoice, installation date, and AHRI documentation.

💵 Step 5: Wait 4–8 weeks for your rebate check or credit confirmation.

“I finished the form on my lunch break,” Mark says. “It was that easy.”

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🏠 9️⃣ How the 92% AFUE Model Still Saves You Money

Even without federal credits, a 92% AFUE furnace can save hundreds annually compared to older, less efficient systems.

📉 Example Calculation:

• Old furnace: 80% AFUE

• New Goodman GR9S920603BN: 92% AFUE

• Annual fuel cost: $1,000

Savings:
$1,000 × (1 - 0.80/0.92) = ~$130 per year

Over 15 years, that’s $1,950 saved in fuel alone — not counting rebates or maintenance savings.

“That’s like getting a rebate every winter,” Mark says.

Reference: Energy.gov – Energy Saver Calculator

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🌡️ 🔟 Payback Period and Return on Investment

Here’s Mark’s personal math from his Ohio home installation:

By year three, his Goodman furnace had essentially paid for its efficiency upgrades.

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🧾 1️⃣1️⃣ Federal vs. Local Rebates — Key Differences

In short, while federal programs reward ultra-high-efficiency units, local rebates reward sensible upgrades — making the Goodman 92% AFUE model an excellent middle ground.

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⚡ 1️⃣2️⃣ Financing + Rebates = Double Savings

Mark combined his $200 utility rebate with a 0% interest 18-month financing plan from his installer.
That meant no interest, a lower upfront cost, and immediate comfort.

Many Goodman dealers offer similar promotions year-round.

“It made upgrading painless,” Mark says. “Rebates help, but low financing sealed the deal.”

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🌍 1️⃣3️⃣ Environmental Benefits — Efficiency Beyond the Wallet

Each upgrade from an 80% to a 92% furnace saves roughly 1.5 tons of CO₂ annually, according to the EPA’s Greenhouse Gas Equivalencies Calculator.

That’s equivalent to:

• Taking a car off the road for 3 months, or

• Planting 20 trees every year

So even if you miss out on federal credits, your efficiency upgrade still makes a meaningful impact.

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🧠 1️⃣4️⃣ Common Myths About Furnace Rebates

✅ Myth: Rebates only apply to electric heat pumps.
❌ Reality: Many utilities offer rebates for natural gas furnaces above 90% AFUE.

✅ Myth: You need ENERGY STAR certification.
❌ Reality: Some state and utility rebates include non-certified models with >90% efficiency.

✅ Myth: Applying for rebates is complicated.
❌ Reality: Most take less than 15 minutes online.

✅ Myth: You can’t combine rebates and financing.
❌ Reality: Most programs allow stacking incentives for greater savings.

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🧩 1️⃣5️⃣ Preparing for Future Incentives (2026 and Beyond)

Even if your 92% furnace doesn’t qualify today, future programs may expand to include mid-efficiency gas models.

The High-Efficiency Electric Home Rebate Program (HEEHRP), rolling out state-by-state in 2025–2026, may include hybrid HVAC systems — combining gas furnaces with heat pumps.

Reference: Energy.gov – IRA Rebates Overview

“If I ever add a heat pump, I’ll check again,” Mark says. “The rules keep changing — and that’s good for homeowners.”

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🧾 1️⃣6️⃣ How to Maximize Your Rebate Potential

Mark’s checklist for homeowners:

• ✅ Choose a furnace with ≥90% AFUE efficiency

• ✅ Ask your dealer for rebate paperwork upfront

• ✅ Keep copies of your invoice and AHRI certificate

• ✅ File online within 90 days of installation

• ✅ Combine local rebates with low-interest financing

“A little organization saves a lot of money,” he says.

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💬 1️⃣7️⃣ Real Customer Example

Mark’s neighbor, Janet, replaced her 75% AFUE furnace with a Goodman 92% model in early 2024. She claimed:

• $200 from her local utility

• $150 seasonal rebate from Goodman’s distributor

• $130/year in lower gas bills

Her total savings over 5 years? Over $1,000 — and her house stays warmer with less fuel.

“The rebate was a bonus,” Janet said. “The comfort was the real reward.”

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💡 1️⃣8️⃣ The Bottom Line — How Much Can You Really Save?

Even without a federal credit, a 92% furnace provides real, measurable financial value:

“It might not sound huge,” Mark says, “but over time, that’s real money.”

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🏁 Conclusion — Smart Efficiency Still Pays

While the Goodman GR9S920603BN (92% AFUE) doesn’t qualify for the federal $600 tax credit in 2025, it remains a smart investment for homeowners seeking dependable efficiency at a great price.

• You’ll still qualify for state and local rebates

• You’ll reduce fuel costs by 10–15% annually

• You’ll contribute to lower emissions and a greener home

“I didn’t chase the biggest rebate,” Mark says. “I went for the best value — and my Goodman furnace still pays me back every month.”

Whether you’re upgrading from an 80% AFUE model or installing a new system, the Goodman 92% remains one of the most cost-effective choices for long-term comfort, energy savings, and real-world performance.

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In the next topic we will know more about: Is 60,000 BTUs Enough for Your Home? Sizing Tips for the Goodman GR9S920603BN