Can I Get a Tax Credit for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement projects that they need to complete or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is a task that may be key to keeping your home comfortable during the colder months in Moline.

Purchasing a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you might 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 buy 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At J.L. Brady Company LLC, we’ll help you find a solution 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 represents 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 purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

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