Can I receive a tax credit for my new furnace?

April 08, 2020

For a lot of homeowners, there usually seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is an example of a job that may be critical to keeping your home comfortable during the colder months in Wyandotte.

Buying a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy bills, but it might be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you might be qualified 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 have to purchase 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Gee & Missler Heating & Air Conditioning, the experts will help you select a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that the furnace you pick 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.

Qualifying for the tax credit won’t be the only savings you’ll find when you get 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 you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals at Gee & Missler Heating & Air Conditioning a call at 734-363-8907. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.