Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a long list of home improvement to-do’s that they would like to do or new ideas they’d like to attempt. While some may not be required, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the colder months in Mount Horeb.

Getting a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a tad daunting at first. The good news is that when you select 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 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 researching furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At JW Brager Heating and Cooling, we’ll help you find an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you choose 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 will not be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at JW Brager Heating and Cooling a call at 608-447-0555. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.