Can I Receive a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement tasks that they want to get done or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a task that might be key to keeping your home comfortable during the colder months in Wyandotte.

Buying a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a little intimidating at first. The good news is that when you select 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 prolonged through December 31, 2020. In order to receive the tax credit, you have to purchase 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Gee & Missler Heating & Air Conditioning, we’ll help you identify a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check 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 is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Gee & Missler Heating & Air Conditioning a call at 734-284-1224. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.