Can I get a tax credit for my new furnace?

April 08, 2020

For most families, there typically seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is one task that could be vital to keeping your home comfortable during the cooler months in Ellsworth.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy costs, but it may 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 prolonged through December 31, 2020. In order to receive 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, watch for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Walter's-Eaton's Electric, Plumbing, Heating & AC, our team can help you determine an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

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