Here in Passaic, NJ, a discarded water heater will not be picked up unless a plumbing permit has been obtained for its replacement.
Given the danger of an incorrectly installed furnace or water heater (Carbon Monoxide, natural gas, fire, etc.) I would hope that a permit is required for a furnace install as well.
One concern about this photo are the cables that touch the pipes. The pipes can become extremely hot, especially when the pipes are close to the furnace. Is Romex allowed near such installations? Can insulation withstand temperatures that could possibly reach almost 200 degrees F?
Where is the [electric] shut-off switch?
Obviously the j-box needs a cover.
