Can I Earn Tax Credits for My New Furnace?

For a lot of homeowners, there typically seems to be a large list of home improvement projects that they would like to do or new ideas they’d like to try. While several may not be necessary, furnace replacement is a project that could be vital to keeping your home comfortable through the winter months in Wausau.

Buying a new furnace is a large investment. You’ll definitely feel the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended through December 31, 2020. In order to receive the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Gilray Heating and Cooling, we’ll help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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 represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll receive when you get a new high-efficiency furnace. Many of the most efficient furnaces 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 comfort level.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our experts at Gilray Heating and Cooling a call at 715-301-0727. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.