Can I Receive Tax Credits for My New Furnace?

For most families, there always seems to be a long list of home improvement projects that they want to complete or new ideas they’d like to try. While some may not be required, furnace replacement is a task that might be critical to keeping your home comfortable through the cooler months in Sandpoint.

Getting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it might be a little daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might 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 get the tax credit, you have to select a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Age Heating & Cooling, our team can help you determine an option that fits your needs and ensures 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 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. Some of the most efficient solutions can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by getting a new high-efficiency furnace, give our technicians at Age Heating & Cooling a call at 208-603-2210. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.