Can I Earn a Tax Credit for My New Furnace?

For many households, there usually seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is one project that could be key to keeping your home comfortable through the winter months in Pocatello.

Buying a new furnace is a sizeable investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it may be a bit daunting at first. The good news is that when you select 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 prolonged through December 31, 2020. In order to obtain the tax credit, you have to select 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, look for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Vogts Heating & Air, the experts will help you select a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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.

This tax credit won’t be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your family will also have higher 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 might be eligible for by purchasing a new high-efficiency furnace, give our experts at Vogts Heating & Air a call at 208-621-0129. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.