Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of households, there typically seems to be a long list of home improvement to-do’s that they would like to complete or new ideas they’d like to try. While some may not be required, furnace replacement is a task that could be key to keeping your home comfortable throughout the colder months in Mankato area.

Getting a new furnace is a sizeable investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a little daunting at first. The good news is that when you shop for 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 receive the tax credit, you have to buy 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 an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need 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 represents 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 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 throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of 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 507-307-4818. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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