Can I Get a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is an example of a task that could be critical to keeping your home comfortable throughout the winter months in West Jefferson.

Getting a new furnace is a large investment. You’ll definitely realize the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a bit intimidating at first. The good news is that when you buy a new energy-efficient furnace, you might be qualified 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 have to buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At West Jefferson Plumbing and Heating, Inc., our team can help you select a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify 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 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 find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting a new high-efficiency furnace, give our experts at West Jefferson Plumbing and Heating, Inc. a call at 614-879-9091. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.