Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, there usually seems to be a large list of home improvement to-do’s that they would like to do or new ideas they’d like to attempt. While several may not be required, furnace replacement is an example of a project that could be critical to keeping your home comfortable throughout the colder months in Cache Valley.

Buying a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a bit 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 extended through December 31, 2020. In order to obtain the tax credit, you are required to 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Western Mechanical, Inc., we’ll help you select an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm 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.

This tax credit is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills 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 come across questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our experts at Western Mechanical, Inc. a call at 435-753-5515. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.