Can I get a tax credit for my new furnace?

April 08, 2020

For a lot of households, there typically seems to be a large list of home improvement projects that they want to get done or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a job that might be critical to keeping your home comfortable through the colder months in Keokuk.

Buying a new furnace is a big investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to receive the tax credit, you must select 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, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At WM J Kraus & Son, our team can help you find a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to confirm the furnace you pick 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have higher 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 other local savings you may be eligible for by installing a new high-efficiency furnace, give our professionals at WM J Kraus & Son a call at 319-229-2318. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.