Can I Get Tax Credits for My New Furnace?

For most homeowners, there typically seems to be a long list of home improvement to-do’s that they would like to complete or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is a project that could be critical to keeping your home comfortable through the winter months in Dresden.

Purchasing a new furnace is a great investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your energy costs, but it may be a tad overwhelming at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to get the tax credit, you are required 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 shopping 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 determine a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient products 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 keep your house at just the right comfort level.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at McFadden Heating & Cooling a call at 519-683-2339. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.