Can I Get Tax Credits for My New Furnace?

For many families, there usually seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While some may not be required, furnace replacement is one job that could be key to keeping your home comfortable throughout the winter months in Genoa.

Purchasing a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a little intimidating at first. The good news is that when you pick a new energy-efficient furnace, you might 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 have to 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 looking for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Assured Appliance & Heating & Air, our team can help you determine a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you choose 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And you’ll also have more confidence in your HVAC system to help your home stay at just the right temperature.

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