Can I Get a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is one task that might be key to keeping your home comfortable throughout the cooler months in Marshfield.

Buying a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to obtain the tax credit, you must 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At House of Heating Incorporated, our team can help you determine an option that matches 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temperature.

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