Can I get a tax credit for my new furnace?

April 08, 2020

For many homeowners, there typically seems to be a long list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable throughout the colder months in Genoa.

Selecting a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be eligible 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 have to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Assured Appliance and Heating & Air, we’ll help you choose 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 confirm the furnace you select 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.

This tax credit won’t be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient solutions 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 keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Assured Appliance and Heating & Air a call at 847-306-8990. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.