Can I Receive Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement projects that they need to do or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a job that could be key to keeping your home comfortable through the colder months in Rockford.

Buying a new furnace is a sizeable investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you may 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 must buy 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Temperature Doctors Heating & Cooling, we’ll help you identify a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you select 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.

This tax credit will not be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our teams at Temperature Doctors Heating & Cooling a call at (815) 914-6197. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.