Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to try. While several may not be required, furnace replacement is a project that may be critical to keeping your home comfortable throughout the winter months in South Beloit and Belvidere.

Selecting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you could 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 obtain the tax credit, you have 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Fleming Heating & Air Conditioning Inc, the experts will help you identify a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 represents 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 buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at Fleming Heating & Air Conditioning Inc a call at 877-389-2465. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.