Can I Receive Tax Credits for My New Furnace?

For a lot of households, there always seems to be a long list of home improvement to-do’s that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is a job that might be critical to keeping your home comfortable during the winter months in Menomonie and western Wisconsin.

Purchasing a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit 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 extended through December 31, 2020. In order to receive the tax credit, you are required to purchase 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 shopping for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Halverson Brothers Inc, we’ll help you find a product that meets 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 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.

This tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs throughout the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions concerning 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 teams at Halverson Brothers Inc a call at 715-352-4052. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.