Can I Earn Tax Credits for My New Furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a project that may be vital to keeping your home comfortable during the winter months in Kankakee.

Getting a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it may be a little intimidating 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 extended through December 31, 2020. In order to receive the tax credit, you are required to purchase 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Home Furniture, Plumbing & Heating, we’ll help you identify a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm 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.

Qualifying for the tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you may 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 company if you have questions about other eligible home products.