Can I Get a Tax Credit for My New Furnace?

For most homeowners, there always seems to be a large list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is one job that might be critical to keeping your home comfortable throughout the cooler months in Pella.

Purchasing a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it could be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might 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 have 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Van Haaften Plumbing & Heating, our team can help you select a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 means 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 find when you buy a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills during the year. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Van Haaften Plumbing & Heating a call at 641-628-3621. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.