Can I Get a Tax Credit for My New Furnace?

For many families, there typically seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is one task that could be key to keeping your home comfortable throughout the winter months in Plover.

Buying a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be qualified 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 receive the tax credit, you are required to purchase 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 looking for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Point Heating & Cooling, we’ll help you find a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm 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.

Taking advantage of this opportunity will not be the only savings you’ll find when you purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Point Heating & Cooling a call at 715-504-0533. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.