Can I Receive a Tax Credit for My New Furnace?

For most households, there usually seems to be a long list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is a job that might be vital to keeping your home comfortable during the cooler months in Savage.

Purchasing a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your utility costs, but it might be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you must 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 looking for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Gopher Heating and Air Conditioning, the experts will help you find a product that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 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 buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our technicians at Gopher Heating and Air Conditioning a call at 952-373-0377. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.