Can I Get a Tax Credit for My New Furnace?

For many households, there usually seems to be a long list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a project that may be vital to keeping your home comfortable during the colder months in Marshalltown.

Buying a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your utility costs, but it could be a little intimidating at first. The good news is that when you select 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 extended through December 31, 2020. In order to receive the tax credit, you must 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At B & G HVAC, the experts will help you select an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you get 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 household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our teams at B & G HVAC a call at 641-316-3360. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.