Can I Get a Tax Credit for My New Furnace?

For many households, there always seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a job that could be key to keeping your home comfortable through the winter months in Savage.

Selecting a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were pushed through December 31, 2020. In order to get 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, look for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Gopher Heating and Air Conditioning, our team can help you choose an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm 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 won’t be the only savings you’ll find when you purchase 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 your family will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across 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 professionals at Gopher Heating and Air Conditioning a call at 952-373-0377. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.