Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is an example of a project that might be critical to keeping your home comfortable during the cooler months in Thedford.

Getting a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit intimidating at first. The good news is that when you select 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 extended through December 31, 2020. In order to obtain the tax credit, you are required 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 heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Taylor's Heating & Air Conditioning, we’ll help you determine an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that 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.

This tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Taylor's Heating & Air Conditioning a call at 519-296-4437. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.