Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a project that may be vital to keeping your home comfortable during the winter months in Thedford.

Getting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad 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 pushed through December 31, 2020. In order to receive the tax credit, you are required 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Taylor's Heating & Air Conditioning, our team can help you find an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals 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.