Can I Get Tax Credits for My New Furnace?

For many homeowners, there typically seems to be a large list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a project that might be vital to keeping your home comfortable throughout the colder months in Cache Valley.

Buying a new furnace is a sizeable investment. You’ll certainly notice the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a bit overwhelming at first. The good news is that when you buy a new energy-efficient furnace, you may 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 get the tax credit, you must select 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Western Mechanical, Inc., we’ll help you identify a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to clarify that the furnace you select 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 is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you could be eligible for by installing a new high-efficiency furnace, give our experts at Western Mechanical, Inc. a call at 435-753-5515. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.