Can I Earn a Tax Credit for My New Furnace?

For many households, there always seems to be a long list of home improvement to-do’s that they want to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is a task that might be key to keeping your home comfortable through the cooler months in Sandpoint.

Selecting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad intimidating at first. The good news is that when you buy a new energy-efficient furnace, you may 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 obtain the tax credit, you have 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, look for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Age Heating & Cooling, our team can help you find an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check the furnace you choose 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 won’t be the only savings you’ll find when you purchase a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at Age Heating & Cooling a call at 208-603-2210. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.