Can I Earn a Tax Credit for My New Furnace?

For most households, there always seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a project that could be vital to keeping your home comfortable during the cooler months in Bloomfield.

Getting a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy bills, but it may be a little intimidating 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 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 researching furnace replacements, look for products 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 a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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.

This tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians 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.