Can I Receive a Tax Credit for My New Furnace?

For most homeowners, there always seems to be a large list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While several may not be required, furnace replacement is one job that may be critical to keeping your home comfortable through the cooler months in Wausau.

Selecting a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit daunting at first. The good news is that when you pick a new energy-efficient furnace, you may 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 receive the tax credit, you have 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 shopping for furnace replacements, watch for products with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Gilray Heating and Cooling, the experts will help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 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 purchase a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to help your home stay at just the right temperature.

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