Can I Earn a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a large list of home improvement projects that they want to complete or new ideas they’d like to try. While some may not be required, furnace replacement is a project that might be vital to keeping your home comfortable during the winter months in Libertyville.

Buying a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a little intimidating at first. The good news is that when you shop for 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 prolonged through December 31, 2020. In order to receive the tax credit, you must select 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, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At TopTec, our team can help you identify an option that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents 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 observe when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying 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.