Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a large list of home improvement projects that they want to do or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one project that might be vital to keeping your home comfortable during the colder months in Lansing.

Getting a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort in addition to your energy costs, but it may be a tad daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could 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 are required 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, look for heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Everest Heating & Cooling, we’ll help you find an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm the furnace you choose 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 will not be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at Everest Heating & Cooling a call at 913-845-9463. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.