Can I Get a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a lengthy list of home improvement projects that they want to get done or new ideas they’d like to try. While some may not be necessary, furnace replacement is an example of a project that could be critical to keeping your home comfortable throughout the winter months in Auburn.

Purchasing a new furnace is a big investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a little daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 obtain the tax credit, you have to purchase 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 shopping for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Forster Heating, we’ll help you select a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you choose 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.

This tax credit will not be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

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 buying a new high-efficiency furnace, give our teams at Forster Heating a call at 530-885-8081. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.