Can I Receive a Tax Credit for My New Furnace?

For a lot of homeowners, 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 give a shot. While a handful may not be necessities, furnace replacement is a project that could be vital to keeping your home comfortable through the cooler months in Mankato area.

Getting a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your utility costs, but it might be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you could be approved 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 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Northern Comfort Inc, the experts will help you find a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check the furnace you select 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right temp.

If you come across questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our professionals at Northern Comfort Inc a call at 507-387-6596. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.