Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is a task that may be vital to keeping your home comfortable throughout the colder months in Dresden.

Getting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit daunting at first. The good news is that when you buy 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 receive the tax credit, you have to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At McFadden Heating & Cooling, our team can help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at McFadden Heating & Cooling a call at 1-866-781-0111. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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