Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a task that could be vital to keeping your home comfortable during the winter months in Marshfield.

Getting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a little daunting at first. The good news is that when you shop for 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 get the tax credit, you have to buy 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At House of Heating Incorporated, we’ll help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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