Can I Receive Tax Credits for My New Furnace?

For most households, there usually seems to be a long list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is an example of a project that might be key to keeping your home comfortable throughout the colder months in Moline.

Buying a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to receive the tax credit, you have 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 researching 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 identify an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you choose 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 will not be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs all year long. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

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