Can I Get a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a lengthy list of home improvement projects that they would like to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one job that could be critical to keeping your home comfortable during the cooler months in Dresden.

Getting a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy bills, but it might be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you may 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 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 looking for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At McFadden Heating & Cooling, the experts will help you identify an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temp.

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