Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is a project that might be key to keeping your home comfortable during the colder months in Plover.

Buying a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a little intimidating at first. The good news is that when you purchase 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 get the tax credit, you must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Point Heating & Cooling, our team can help you choose a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 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 find when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying 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 company if you have questions about other eligible home products.