Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there usually seems to be a lengthy list of home improvement projects that they need to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is a task that could be critical to keeping your home comfortable during the cooler months in Newton.

Purchasing a new furnace is a large investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy bills, but it may be a tad intimidating 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 extended 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Brookwood Inc, our team can help you identify a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 represents 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. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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