Can I Receive a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large list of home improvement tasks that they want to get done or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a job that might be vital to keeping your home comfortable during the winter months in Crown Point.

Getting a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it could be a bit overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be eligible 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 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Struven Heating & Cooling, the experts will help you choose an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Struven Heating & Cooling a call at 219-292-0956. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.