Can I receive a tax credit for my new furnace?

April 08, 2020

For most families, there always seems to be a long list of home improvement to-do’s that they need to do or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is an example of a project that may be vital to keeping your home comfortable throughout the colder months in Lawrence.

Buying a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a little 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 prolonged through December 31, 2020. In order to receive the tax credit, you must 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 browsing for furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Scott Temperature, we’ll help you choose a product that matches your needs and makes sure 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 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 find when you select a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you think of questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our technicians at Scott Temperature a call at 785-269-0465. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.