Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a lengthy list of home improvement projects that they need to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is one job that might be critical to keeping your home comfortable throughout the colder months in Bloomfield.

Selecting a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little overwhelming 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 prolonged through December 31, 2020. In order to obtain the tax credit, you must 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Stanford Heating & Cooling, we’ll help you determine an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check the furnace you select 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.

Qualifying for the tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient solutions 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 help your home stay at just the right temperature.

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

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