Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many homeowners, there typically seems to be a long list of home improvement projects that they want to complete or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is one project that could be vital to keeping your home comfortable through the winter months in Keokuk.

Getting a new furnace is a big investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your utility 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 might be eligible 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 obtain the tax credit, you have to select 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 looking for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At WM J Kraus & Son, the experts will help you identify a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll observe when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your household will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by getting a new high-efficiency furnace, give our teams at WM J Kraus & Son a call at 319-229-2318. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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