Can I Receive a Tax Credit for My New Furnace?

For most families, there usually seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to try. While a handful may not be required, furnace replacement is a job that might be critical to keeping your home comfortable throughout the colder months in Pella.

Buying a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you might 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 obtain 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 looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Van Haaften Plumbing & Heating, we’ll help you choose a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to clarify that the furnace you choose 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 will not be the only savings you’ll receive when you select 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 maintain your indoor space at just the right temp.

If you come across 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 technicians at Van Haaften Plumbing & Heating a call at 641-628-3621. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.