Can I Earn a Tax Credit for My New Furnace?

For most households, there usually seems to be a lengthy list of home improvement to-do’s that they would like to do or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable throughout the cooler months in South Beloit and Belvidere.

Purchasing a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may be qualified 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 obtain the tax credit, you have to buy 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, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Fleming Heating & Air Conditioning Inc, our team can help you identify an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm 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 will not be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at Fleming Heating & Air Conditioning Inc a call at 877-389-2465. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.