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Can I earn a tax credit for my new furnace?

April 08, 2020

For many households, there typically seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to try. While some may not be required, furnace replacement is an example of a task that could be key to keeping your home comfortable through the colder months in Plainfield.

Buying a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort along with your energy bills, but it may be a little overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you may be eligible 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 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 looking for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At PWA Heating & Cooling Inc, the experts will help you choose an option that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll find when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility 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 further local savings you may be eligible for by getting a new high-efficiency furnace, give our technicians at PWA Heating & Cooling Inc a call at 815-410-1231. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.