Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of families, there typically seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a job that may be key to keeping your home comfortable through the colder months in Marshalltown.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little intimidating at first. The good news is that when you buy a new energy-efficient furnace, you could be eligible 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 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At B & G HVAC, we’ll help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that the furnace you choose 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 observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at B & G HVAC a call at 641-323-1210. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.