Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most homeowners, there always seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a job that may be key to keeping your home comfortable during the colder months in Savage.

Selecting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a tad daunting at first. The good news is that when you pick 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 must select 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Gopher Heating and Air Conditioning, the experts will help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Gopher Heating and Air Conditioning a call at 952-373-0377. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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