Can I Receive Tax Credits for My New Furnace?

For many families, there typically seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is a project that could be vital to keeping your home comfortable during the colder months in Ellsworth.

Buying a new furnace is a large investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little daunting at first. The good news is that when you buy a new energy-efficient furnace, you might 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 receive the tax credit, you are required 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 heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Walter's-Eaton's Electric, Plumbing, Heating & AC, we’ll help you determine a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions about 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 experts at Walter's-Eaton's Electric, Plumbing, Heating & AC a call at 715-318-6728. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.