Can I Earn a Tax Credit for My New Furnace?

For many households, there usually seems to be a large list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one project that could be vital to keeping your home comfortable through the colder months in Athol.

Buying a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a tad intimidating at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to receive the tax credit, you are required to purchase 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Alpine Summit Heating & Cooling, the experts will help you find a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm the furnace you choose 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.

This tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you have questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at Alpine Summit Heating & Cooling a call at 208-561-1226. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.