Can I Receive a Tax Credit for My New Furnace?

For many households, there typically seems to be a large list of home improvement projects that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is a project that could be vital to keeping your home comfortable during the cooler months in Plover.

Purchasing a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified 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 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Point Heating & Cooling, the experts will help you find a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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.

This tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions regarding 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 teams at Point Heating & Cooling a call at 715-504-0533. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.