Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is an example of a project that could be vital to keeping your home comfortable throughout the colder months in Thedford.

Purchasing a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little daunting at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to get the tax credit, you have to select a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

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

Taking advantage of this opportunity won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

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