Can I Earn a Tax Credit for My New Furnace?

For most families, there always seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one task that may be key to keeping your home comfortable throughout the winter months in Marshalltown.

Purchasing a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit overwhelming 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 obtain the tax credit, you have 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, look for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Kapaun & Brown, our team can help you select 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 confirm the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means 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 products can save you hundreds of dollars on your energy bills during the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right comfort level.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our professionals at Kapaun & Brown a call at 641-812-2028. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.