Can I Receive Tax Credits for My New Furnace?

For many homeowners, there always seems to be a long list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is an example of a project that might be critical to keeping your home comfortable during the cooler months in Crystal and Twin Cities.

Purchasing a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may be eligible 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. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At GV Heating & Air, the experts will help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm the furnace you pick 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.

This tax credit won’t be the only savings you’ll observe when you purchase 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 greater confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our professionals at GV Heating & Air a call at 763-535-2000. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.