Can I receive a tax credit for my new furnace?

April 08, 2020

For most families, there always seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is one project that could be critical to keeping your home comfortable during the colder months in Plover.

Selecting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it may be a little overwhelming at first. The good news is that when you shop for 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 get the tax credit, you are required to 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 certain you’re choosing a high-efficiency furnace.

At Point Heating & Cooling, we’ll help you determine a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your family will also have more 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 further local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Point Heating & Cooling a call at 715-504-0533. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.