Can I Get Tax Credits for My New Furnace?

For many families, there usually seems to be a lengthy list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is a task that could be critical to keeping your home comfortable during the colder months in Huntingburg.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you could 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 receive the tax credit, you have to buy 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 looking for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Dearing's Service & Solutions, the experts will help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you pick 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 observe when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs during 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 think of questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our teams at Dearing's Service & Solutions a call at 812-200-5844. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.