Can I earn a tax credit for my new furnace?

April 08, 2020

For most households, there always seems to be a large list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is an example of a task that may be key to keeping your home comfortable during the colder months in Carpentersville.

Purchasing a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort in addition to 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 may 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 get the tax credit, you have to 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Controlled Comfort HVAC Inc, we’ll help you determine a product that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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.

Taking advantage of this opportunity is not going to be the only savings you’ll find when you get a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our technicians at Controlled Comfort HVAC Inc a call at 224-412-8308. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.