Can I Get Tax Credits for My New Furnace?

For a lot of families, there usually seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to try. While several may not be required, furnace replacement is one project that may be key to keeping your home comfortable through the colder months in Rockford.

Buying a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad intimidating at first. The good news is that when you pick a new energy-efficient furnace, you could be eligible 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 get the tax credit, you are required to buy 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 shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Temperature Doctors Heating & Cooling, our team can help you select an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that the furnace you choose 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.

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

If you have questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by buying a new high-efficiency furnace, give our professionals at Temperature Doctors Heating & Cooling a call at (815) 914-6197. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.