Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many families, there always seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a project that could be vital to keeping your home comfortable through the colder months in Libertyville.

Purchasing a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be qualified 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 receive the tax credit, you have to select 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Toptec Heating, Cooling, Plumbing & Electrical, the experts will help you identify a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to confirm the furnace you select 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 is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you might be eligible for by getting a new high-efficiency furnace, give our professionals at Toptec Heating, Cooling, Plumbing & Electrical a call at 847-362-0262. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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