Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a lengthy list of home improvement to-do’s that they want to do or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a job that might be critical to keeping your home comfortable throughout the winter months in Newton.

Getting a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you could 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 get the tax credit, you have 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 looking for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Brookwood Inc, the experts will help you select an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity won’t be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs all year long. And your household will also have higher confidence in your HVAC system to keep your house at just the right temperature.

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