Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a long list of home improvement projects that they would like to get done or new ideas they’d like to try. While several may not be necessities, furnace replacement is one job that might be vital to keeping your home comfortable throughout the colder months in Moline.

Getting a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a tad overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you may be approved 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 receive the tax credit, you are required to select 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 looking for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Freed Heating & Air Conditioning, the experts will help you determine a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing 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.

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