Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is a project that may be vital to keeping your home comfortable through the winter months in Jefferson.

Getting a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you could 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 obtain the tax credit, you are required 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Pratt Brothers, we’ll help you identify an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs 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 have questions regarding 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 Pratt Brothers a call at 920-347-8495. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.