Can I Get a Tax Credit for My New Furnace?

For many households, there always seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a task that might be vital to keeping your home comfortable throughout the colder months in Kankakee.

Getting a new furnace is a sizeable investment. You’ll absolutely see the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a tad overwhelming at first. The good news is that when you pick 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 extended through December 31, 2020. In order to receive the tax credit, you have to select 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Home Furniture, Plumbing & Heating, we’ll help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting 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.