Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most households, there always seems to be a large list of home improvement projects that they need to do or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a task that may be key to keeping your home comfortable throughout the cooler months in Newton.

Selecting a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your utility costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible 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 obtain the tax credit, you must buy 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 researching furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Brookwood Inc, the experts will help you find a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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 installing a new high-efficiency furnace, give our experts at Brookwood Inc a call at 641-316-9803. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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