Can I Receive Tax Credits for My New Furnace?

For most families, there typically seems to be a lengthy list of home improvement projects that they need to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is a task that might be critical to keeping your home comfortable through the colder months in Newton.

Buying a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a little intimidating at first. The good news is that when you select 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 extended through December 31, 2020. In order to obtain the tax credit, you must purchase 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 browsing for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Brookwood Inc, the experts will help you identify a product that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that 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 is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces 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 keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Brookwood Inc a call at 641-316-9803. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.