Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a large list of home improvement to-do’s that they want to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a project that could be critical to keeping your home comfortable throughout the winter months in Seymour.

Buying a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you might 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 obtain 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Diedrick's Heating and Air Conditioning, the experts will help you find an option that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents 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. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you have 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 teams at Diedrick's Heating and Air Conditioning a call at 920-833-7967. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.