Can I Get a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a job that might be key to keeping your home comfortable throughout the colder months in Savage.

Selecting a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit daunting at first. The good news is that when you select a new energy-efficient furnace, you may be qualified 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 are required to buy 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 researching furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Gopher Heating and Air Conditioning, we’ll help you identify a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you choose 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. Many of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

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