Can I Receive a Tax Credit for My New Furnace?

For most households, there always seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one task that might be key to keeping your home comfortable during the cooler months in Ames.

Getting a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy bills, but it may be a little daunting at first. The good news is that when you shop for a new energy-efficient furnace, you could be qualified 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 obtain the tax credit, you have to select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Haselhoff Air Solutions, we’ll help you determine a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you pick 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you purchase a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you have questions regarding your eligibility for a tax credit, or if there are other local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Haselhoff Air Solutions a call at 515-450-8739. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.