Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most families, there usually seems to be a lengthy list of home improvement tasks that they want 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 critical to keeping your home comfortable during the colder months in Pella.

Selecting a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy costs, but it may be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 receive the tax credit, you must purchase 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 browsing for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Van Haaften Plumbing & Heating, the experts will help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at Van Haaften Plumbing & Heating a call at 641-628-3621. 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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