Can I receive a tax credit for my new furnace?

April 08, 2020

For most households, there always seems to be a lengthy list of home improvement to-do’s that they want to complete or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is an example of a project that could be vital to keeping your home comfortable through the winter months in Racine.

Purchasing a new furnace is a sizeable investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you may 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 get the tax credit, you have to select a furnace that has earned the ENERGY STAR label. Keep in mind 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 sure you’re selecting a high-efficiency furnace.

At Keystone Heating & Air Conditioning Co., Inc, the experts will help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions regarding 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 Keystone Heating & Air Conditioning Co., Inc a call at 262-358-9468. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.