Can I Earn a Tax Credit for My New Furnace?

For most families, there always seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While a handful may not be necessary, furnace replacement is one project that might be vital to keeping your home comfortable during the cooler months in Carpentersville.

Purchasing a new furnace is a sizeable investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it might be a tad daunting at first. The good news is that when you pick a new energy-efficient furnace, you may be qualified 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 are required to purchase 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Controlled Comfort HVAC, the experts will help you select 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 clarify that the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates 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 solutions can save you hundreds of dollars on your utility costs throughout the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

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