Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement tasks that they need to complete or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable throughout the cooler months in Kankakee.

Buying a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your energy costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might 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. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Home Furniture, Plumbing & Heating, the experts will help you identify an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that the furnace you pick 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.

Taking advantage of this opportunity will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our technicians at Home Furniture, Plumbing & Heating a call at 815-933-8213. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.