Can I Earn Tax Credits for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one project that may be key to keeping your home comfortable during the cooler months in Dundas and Northfield.

Selecting a new furnace is a great investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy costs, but it might be a little daunting 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 extended through December 31, 2020. In order to receive the tax credit, you must buy 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Better Air, the experts will help you determine a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Better Air a call at 507-663-1208. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.