Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a lengthy list of home improvement projects that they need to complete or new ideas they’d like to try. While some may not be necessities, furnace replacement is one job that could be critical to keeping your home comfortable throughout the cooler months in Elk River.

Getting a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a tad intimidating 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 are required to purchase 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Home Comfort Heating & Air, our team can help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you buy 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 your family will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

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