Can I Get a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one project that might be critical to keeping your home comfortable through the colder months in Moline.

Getting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad overwhelming at first. The good news is that when you shop for 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 extended through December 31, 2020. In order to receive 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, 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 Freed Heating & Air Conditioning, the experts will help you determine a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that 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 receive when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Freed Heating & Air Conditioning a call at 309-323-9584. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.