Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to try. While a handful may not be required, furnace replacement is a task that could be vital to keeping your home comfortable throughout the colder months in Ellsworth.

Getting a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it may be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you might be qualified 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 receive the tax credit, you must purchase 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Walter's-Eaton's Electric, Plumbing, Heating & AC, our team can help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to check the furnace you choose 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 won’t be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our experts at Walter's-Eaton's Electric, Plumbing, Heating & AC a call at 715-318-6728. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.