Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of households, there typically seems to be a long list of home improvement tasks that they would like to get done or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the cooler months in Thedford.

Buying a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit daunting at first. The good news is that when you purchase a new energy-efficient furnace, you may be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you must purchase a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Taylor's Heating & Air Conditioning, the experts will help you determine an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our experts at Taylor's Heating & Air Conditioning a call at 519-296-4437. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.