Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there always seems to be a large list of home improvement tasks that they need to do or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one task that may be critical to keeping your home comfortable during the cooler months in Lawrence.

Purchasing a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it might be a little 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 receive the tax credit, you are required to select 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, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Scott Temperature, we’ll help you identify a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to check 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 is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs 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 have questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at Scott Temperature a call at 785-269-0465. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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