Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a lengthy list of home improvement to-do’s that they want to complete or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one project that might be key to keeping your home comfortable throughout the colder months in Mankato area.

Buying a new furnace is a large 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 intimidating at first. The good news is that when you select a new energy-efficient furnace, you may be qualified 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 get the tax credit, you must purchase 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Northern Comfort Inc, our team can help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll receive when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to keep your house 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 could be eligible for by getting a new high-efficiency furnace, give our professionals at Northern Comfort Inc a call at 507-387-6596. 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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