Can I earn a tax credit for my new furnace?

April 08, 2020

For most homeowners, there typically seems to be a lengthy list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is one task that might be critical to keeping your home comfortable through the colder months in Redford.

Purchasing a new furnace is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible 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 are required to purchase a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Airtronic Heating & Cooling, the experts will help you find an option that meets your needs and ensures 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity 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 utility costs throughout the year. And your household will also have more confidence in your HVAC system to keep your house at just the right temp.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our experts at Airtronic Heating & Cooling a call at 313-230-4053. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.