Can I Get a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one project that could be critical to keeping your home comfortable through the colder months in Marshalltown.

Selecting a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad overwhelming at first. The good news is that when you shop for 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 are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Kapaun & Brown, the experts will help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 represents the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

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