Can I earn a tax credit for my new furnace?

April 08, 2020

For a lot of households, there typically seems to be a large list of home improvement to-do’s that they want to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is an example of a task that may be vital to keeping your home comfortable during the colder months in Franklin.

Getting a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could 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 get 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Winters Heating and Cooling, we’ll help you identify an option that matches your needs and helps 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 means the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at Winters Heating and Cooling a call at 317-406-5783. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.