Can I Receive a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a project that could be key to keeping your home comfortable during the colder months in Swanton.

Selecting a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a little daunting at first. The good news is that when you purchase 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 obtain the tax credit, you must purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Northwest Services, we’ll help you find an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. 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 concerning 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 teams at Northwest Services a call at 419-548-5017. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.