Can I Earn Tax Credits for My New Furnace?

For a lot of homeowners, there always seems to be a large list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is an example of a job that might be vital to keeping your home comfortable during the cooler months in Auburn.

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 bills, but it might be a little overwhelming 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 get the tax credit, you are required to buy 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 shopping for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Forster Heating, the experts will help you determine a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you choose 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 purchase a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And your household will also have greater confidence in your HVAC system to keep your house at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our teams at Forster Heating a call at 530-885-8081. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.