Can I Earn Tax Credits for My New Furnace?

For a lot of homeowners, there usually seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a project that may be key to keeping your home comfortable through the colder months in Bloomfield.

Buying a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad overwhelming 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 extended through December 31, 2020. In order to obtain the tax credit, you have to 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Stanford Heating & Cooling, we’ll help you select a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And you’ll also have more confidence in your HVAC system to keep your house at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our technicians at Stanford Heating & Cooling a call at 812-825-8695. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.