Can I Receive a Tax Credit for My New Furnace?

For many households, there always 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 give a shot. While some may not be necessary, furnace replacement is an example of a task that could be key to keeping your home comfortable through the colder months in Pella.

Buying a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your energy bills, but it may be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified 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 are required to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Van Haaften Plumbing & Heating, the experts will help you find a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to clarify that 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 receive when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our experts at Van Haaften Plumbing & Heating a call at 641-628-3621. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.