Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is an example of a task that might be key to keeping your home comfortable through the cooler months in Dresden.

Buying a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 obtain the tax credit, you have to purchase 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 browsing for furnace replacements, look 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 find an option that matches 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 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.

This tax credit will not be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

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