Can I Get a Tax Credit for My New Furnace?

For a lot of households, there typically seems to be a large list of home improvement projects that they want to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a job that could be key to keeping your home comfortable during the colder months in South Beloit and Belvidere.

Getting a new furnace is a large investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a tad overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to obtain the tax credit, you must 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Fleming Heating & Air Conditioning Inc, our team can help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify 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.

Taking advantage of this opportunity will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your family will also have more 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 other local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at Fleming Heating & Air Conditioning Inc a call at 877-389-2465. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.