Can I Earn Tax Credits for My New Furnace?

For many households, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one project that might be critical to keeping your home comfortable through the colder months in Bloomfield.

Selecting a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit overwhelming at first. The good news is that when you select 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 get the tax credit, you must 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Stanford Heating & Cooling, the experts will help you choose a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you pick 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.

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by purchasing a new high-efficiency furnace, give our technicians at Stanford Heating & Cooling a call at 812-825-8695. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.