Can I receive a tax credit for my new furnace?

April 08, 2020

For most homeowners, there usually seems to be a large list of home improvement tasks that they would like to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is a task that could be critical to keeping your home comfortable throughout the cooler months in Elk River.

Selecting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad daunting at first. The good news is that when you buy 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 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. 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 Home Comfort Heating & Air, the experts will 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 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Home Comfort Heating & Air a call at 763-276-0617. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.