Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For a lot of homeowners, there typically seems to be a lengthy list of home improvement projects that they would like to do or new ideas they’d like to try. While a handful may not be necessities, furnace replacement is a job that may be vital to keeping your home comfortable during the cooler months in Plainfield.

Selecting a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a little intimidating at first. The good news is that when you purchase a new energy-efficient furnace, you might 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 receive the tax credit, you must 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, watch for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At PWA Heating & Cooling Inc, our team can help you find a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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.

This tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions about 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 may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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