Can I Receive Tax Credits for My New Furnace?

For a lot of households, there typically seems to be a long list of home improvement projects that they would like to complete or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a project that might be key to keeping your home comfortable throughout the winter months in Marshalltown.

Getting a new furnace is a great investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a tad intimidating at first. The good news is that when you buy 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 obtain the tax credit, you are required to 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, look for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Kapaun & Brown, the experts will help you select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have higher confidence in your HVAC system to help your home stay 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 could be eligible for by purchasing a new high-efficiency furnace, give our professionals at Kapaun & Brown a call at 641-812-2028. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.