Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most families, there typically seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a task that could be vital to keeping your home comfortable during the colder months in Marshalltown.

Buying a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a tad daunting at first. The good news is that when you select 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 pushed through December 31, 2020. In order to receive the tax credit, you have to select 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 looking for furnace replacements, keep an eye out for products 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 find a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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 represents 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. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

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

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