Can I Get a Tax Credit for My New Furnace?

For most homeowners, there always seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a task that could be critical to keeping your home comfortable through the cooler months in Ellsworth.

Getting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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 obtain 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Walter's-Eaton's Electric, Plumbing, Heating & AC, the experts will help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that 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.

This tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals 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 establishment if you have questions about other eligible home products.