Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is a job that may be key to keeping your home comfortable during the winter months in Monroe.

Getting a new furnace is a large investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad overwhelming at first. The good news is that when you shop for 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 obtain the tax credit, you have to purchase 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 selecting a high-efficiency furnace.

At Lanz Furnace and Fireplace, the experts will help you choose a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right temperature.

If you have questions concerning 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 teams at Lanz Furnace and Fireplace a call at 608-291-3606. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.