Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most households, there usually seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to attempt. While several may not be necessary, 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 certainly realize the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a bit intimidating 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 extended through December 31, 2020. In order to get the tax credit, you must 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 a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not 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 costs throughout 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 additional local savings you may be eligible for by purchasing 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.

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