Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of families, there usually seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is a task that might be vital to keeping your home comfortable during the winter months in Marshfield.

Selecting a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy bills, but it may be a little overwhelming at first. The good news is that when you purchase 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 prolonged through December 31, 2020. In order to obtain the tax credit, you are required to buy 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At House of Heating Incorporated, the experts will help you find 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 check the furnace you select 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 won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your family will also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at House of Heating Incorporated a call at 715-384-3163. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.