Can I get a tax credit for my new furnace?

April 08, 2020

For many families, there typically seems to be a large list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is an example of a project that might be key to keeping your home comfortable during the colder months in Moline.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you are required to buy 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 solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Freed Heating & Air Conditioning, the experts will help you identify a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important 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 means 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 select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at Freed Heating & Air Conditioning a call at 309-323-9584. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.