Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a large list of home improvement tasks that they would like to do or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is an example of a job that might be critical to keeping your home comfortable during the winter months in Crystal and Twin Cities.

Purchasing a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you could be approved 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 get 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At GV Heating & Air, we’ll help you select an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right comfort level.

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