Can I Receive Tax Credits for My New Furnace?

For a lot of homeowners, there usually seems to be a lengthy list of home improvement tasks that they need to get done or new ideas they’d like to try. While several may not be required, furnace replacement is one project that may be vital to keeping your home comfortable during the cooler months in Libertyville.

Selecting a new furnace is a large investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit intimidating at first. The good news is that when you purchase 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 prolonged through December 31, 2020. In order to get the tax credit, you must 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At TopTec, our team can help you choose a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate 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.

This tax credit won’t be the only savings you’ll find when you purchase a new high-efficiency furnace. Many of the most efficient furnaces 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 come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by purchasing a new high-efficiency furnace, give our technicians at TopTec a call at 847-362-0262. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.