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 try. While some may not be necessities, furnace replacement is one project that may be vital to keeping your home comfortable throughout the colder months in Dresden.

Buying a new furnace is a great investment. You’ll absolutely feel 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 purchase a new energy-efficient furnace, you could be qualified 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 receive the tax credit, you must select 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At McFadden Heating & Cooling, we’ll help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm 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.

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

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our technicians 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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