Can I Get Tax Credits for My New Furnace?

For a lot of homeowners, there always seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a task that could be key to keeping your home comfortable during the colder months in Monroe.

Purchasing a new furnace is a great investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy costs, 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 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 receive the tax credit, you are required to select 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Lanz Furnace and Fireplace, the experts will help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Lanz Furnace and Fireplace a call at 608-291-3606. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.