Can I Earn a Tax Credit for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one task that may be vital to keeping your home comfortable throughout the colder months in Huntingburg.

Getting a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy bills, but it might be a bit intimidating at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to obtain the tax credit, you must 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 certain you’re choosing a high-efficiency furnace.

At Dearing's Service & Solutions, we’ll help you identify an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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 won’t be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more 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 additional local savings you might be eligible for by purchasing a new high-efficiency furnace, give our professionals at Dearing's Service & Solutions a call at 812-200-5844. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.