Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a long list of home improvement to-do’s that they would like to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is one task that could be key to keeping your home comfortable throughout the winter months in Moline.

Getting a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort as well as your energy bills, but it may be a little daunting at first. The good news is that when you select 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 get 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At J.L. Brady Company LLC, we’ll help you find a product that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to check 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 observe when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our experts at J.L. Brady Company LLC a call at 309-517-7511. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.