Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there usually seems to be a large list of home improvement projects that they would like to do or new ideas they’d like to try. While several may not be required, furnace replacement is one task that may be key to keeping your home comfortable throughout the winter months in Sandpoint.

Selecting a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might 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 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 researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Age Heating & Cooling, the experts will help you identify a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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.

Qualifying for the tax credit won’t be the only savings you’ll find when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs during the year. And your family will also have more confidence in your HVAC system to help your home stay at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at Age Heating & Cooling a call at 208-603-2210. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.