Can I Earn Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement tasks that they need to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable through the colder months in Marshalltown.

Selecting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy costs, but it might be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to obtain the tax credit, you must 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At B & G HVAC, our team can help you find a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to help your home stay 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 may be eligible for by installing a new high-efficiency furnace, give our technicians at B & G HVAC a call at 641-316-3360. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.