Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a lengthy list of home improvement projects that they need to complete or new ideas they’d like to try. While a handful may not be required, furnace replacement is one job that may be key to keeping your home comfortable through the cooler months in Rockford.

Purchasing a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort along with your energy bills, but it may be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you may be approved 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 receive the tax credit, you are required to buy a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Temperature Doctors Heating & Cooling, our team can help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that the furnace you select 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 get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And you’ll also have more confidence in your HVAC system to keep your house at just the right comfort level.

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