Can I Get a Tax Credit for My New Furnace?

For many households, there always seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a task that could be vital to keeping your home comfortable through the colder months in Menomonie and western Wisconsin.

Buying a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it may be a bit daunting at first. The good news is that when you select a new energy-efficient furnace, you might 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 buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Halverson Brothers Inc, we’ll help you determine a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Halverson Brothers Inc a call at 715-352-4052. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.