Can I Earn a Tax Credit for My New Furnace?

For most households, there usually seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is an example of a task that could be key to keeping your home comfortable through the colder months in Elk River.

Buying a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little daunting at first. The good news is that when you pick 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 extended through December 31, 2020. In order to get the tax credit, you are required 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Home Comfort Heating & Air, our team can help you identify an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that 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 won’t be the only savings you’ll find when you purchase 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 higher confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our teams at Home Comfort Heating & Air a call at 763-276-0617. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.