Can I Earn a Tax Credit for My New Furnace?

For many households, there typically seems to be a long list of home improvement tasks that they want to do or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a task that might be key to keeping your home comfortable during the winter months in Wausau.

Buying a new furnace is a sizeable investment. You’ll absolutely realize the return-on-investment on your indoor comfort in addition to your energy bills, but it might be a bit intimidating at first. The good news is that when you select a new energy-efficient furnace, you might be approved 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 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 researching 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 Gilray Heating and Cooling, we’ll help you identify a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm the furnace you select 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.

Qualifying for the tax credit will not be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

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