Can I Get a Tax Credit for My New Furnace?

For a lot of families, there always 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 several may not be necessary, furnace replacement is an example of a task that may be vital to keeping your home comfortable throughout the cooler months in Marshalltown.

Selecting a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a bit daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could 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 obtain the tax credit, you must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At B & G HVAC, we’ll help you choose an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check the furnace you pick 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 receive when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by purchasing a new high-efficiency furnace, give our experts at B & G HVAC a call at 641-316-3360. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.