Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of families, there usually seems to be a long list of home improvement tasks that they would like to get done or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a job that could be critical to keeping your home comfortable during the winter months in Auburn.

Selecting a new furnace is a great investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little overwhelming at first. The good news is that when you select 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 extended through December 31, 2020. In order to obtain the tax credit, you are required 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 browsing for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Forster Heating, we’ll help you select a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 is not going to be the only savings you’ll find when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

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

Back To Blog