Can I Earn Tax Credits for My New Furnace?

For many households, there always seems to be a large list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a project that might be critical to keeping your home comfortable throughout the winter months in Moline.

Getting a new furnace is a big investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your energy bills, but it might be a little daunting at first. The good news is that when you purchase 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 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, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Freed Heating & Air Conditioning, our team can help you find a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

Taking advantage of this opportunity will not be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our technicians 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.