Can I Receive a Tax Credit for My New Furnace?

For many homeowners, there typically seems to be a long list of home improvement projects that they would like to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is one task that may be critical to keeping your home comfortable through the cooler months in Lawrence.

Buying a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit intimidating at first. The good news is that when you buy 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 receive the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Scott Temperature, we’ll help you choose a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting 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 organization if you have questions about other eligible home products.