Can I Get a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a lengthy list of home improvement to-do’s that they want to complete or new ideas they’d like to try. While several may not be required, furnace replacement is an example of a job that may be vital to keeping your home comfortable throughout the colder months in Crystal and Twin Cities.

Purchasing a new furnace is a big investment. You’ll definitely realize the return-on-investment on your indoor comfort along with your energy costs, but it may be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you could be eligible 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 get the tax credit, you must 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, look for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At GV Heating & Air, the experts will help you find a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

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

If you have questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at GV Heating & Air a call at 763-535-2000. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.