Can I Earn Tax Credits for My New Furnace?

For most families, there typically seems to be a long list of home improvement tasks that they want to get done or new ideas they’d like to attempt. While some may not be necessities, furnace replacement is an example of a job that may be critical to keeping your home comfortable during the colder months in Mankato area.

Getting a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your utility costs, but it could be a bit overwhelming at first. The good news is that when you pick 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 prolonged through December 31, 2020. In order to receive the tax credit, you have to select 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 shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Northern Comfort Inc, the experts will help you determine a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify 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 indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll observe when you get a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy costs all year long. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right comfort level.

If you think of questions regarding your eligibility for a tax credit, or if there are additional local savings you could be eligible for by buying a new high-efficiency furnace, give our experts at Northern Comfort Inc a call at 507-387-6596. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.