Can I Receive Tax Credits for My New Furnace?

For a lot of households, there typically seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a project that could be key to keeping your home comfortable during the cooler months in Athol.

Buying a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might be eligible 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 buy 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, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Alpine Summit Heating & Cooling, the experts will help you select an option that matches your needs and makes sure 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.

This tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our experts at Alpine Summit Heating & Cooling a call at 208-561-1226. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.