Can I Get Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be required, furnace replacement is one project that might be key to keeping your home comfortable during the colder months in Moline.

Purchasing a new furnace is a big investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it could be a little intimidating at first. The good news is that when you shop for 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 pushed through December 31, 2020. In order to get the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At J.L. Brady Company LLC, we’ll help you find a product that fits 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 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. A lot of the most efficient solutions 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 maintain your indoor space at just the right temp.

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