Can I Earn Tax Credits for My New Furnace?

For a lot of families, there usually seems to be a large list of home improvement projects that they need to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one task that may be key to keeping your home comfortable through the colder months in Monroe.

Buying a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your energy bills, but it may be a little daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 get the tax credit, you are required to select 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, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Lanz Furnace and Fireplace, we’ll help you select an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check 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.

Qualifying for the tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Lanz Furnace and Fireplace a call at 608-291-3606. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.