Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most households, 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 try. While a handful may not be necessary, furnace replacement is one job that might be vital to keeping your home comfortable through the cooler months in Rochester.

Buying a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort in addition to your energy bills, 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 eligible 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 have to select 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Brogan Heating & AC Inc, the experts will help you choose an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you select 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.

This tax credit is not going to be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are additional local savings you might be eligible for by getting a new high-efficiency furnace, give our technicians at Brogan Heating & AC Inc a call at 507-218-0088. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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