Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a large list of home improvement to-do’s that they would like to complete or new ideas they’d like to try. While some may not be necessary, furnace replacement is one project that may be critical to keeping your home comfortable throughout the colder months in Auburn.

Buying a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad overwhelming at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to obtain the tax credit, you must 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Forster Heating, the experts will help you determine an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 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 receive 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 throughout the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temp.

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