Can I Receive a Tax Credit for My New Furnace?

For most households, there always seems to be a lengthy 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 necessities, furnace replacement is an example of a task that could be key to keeping your home comfortable throughout the colder months in Lawrence.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be qualified 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 get the tax credit, you must 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 researching furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Scott Temperature, the experts will help you select a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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.

Taking advantage of this opportunity will not be the only savings you’ll receive when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

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