Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a lengthy list of home improvement projects 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 project that might be key to keeping your home comfortable through the winter months in Libertyville.

Buying a new furnace is a great investment. You’ll absolutely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 must buy a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At TopTec, our team can help you choose an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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 means 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 find when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your utility costs 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 think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by installing a new high-efficiency furnace, give our professionals at TopTec a call at 847-362-0262. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.