Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For many households, there typically seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to try. While some may not be necessary, furnace replacement is a job that may be vital to keeping your home comfortable throughout the winter months in Plainfield.

Selecting a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your utility costs, but it might be a bit daunting at first. The good news is that when you buy 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 pushed through December 31, 2020. In order to get the tax credit, you must purchase 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, watch for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At PWA Heating & Cooling Inc, our team can help you find an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you select 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.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by purchasing a new high-efficiency furnace, give our professionals at PWA Heating & Cooling Inc a call at 815-410-1231. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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