Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement tasks that they need to get done or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a task that may be critical to keeping your home comfortable through the colder months in Swanton.

Getting a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may be approved 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 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 products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Northwest Services, the experts will help you select an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 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 find when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right temp.

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 getting a new high-efficiency furnace, give our technicians at Northwest Services a call at 419-548-5017. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.