Family enjoying the comfort of home

Can I earn a tax credit for my new furnace?

For most families, there usually seems to be a lengthy list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is an example of a project that might be critical to keeping your home comfortable through the winter months in Menomonie and western Wisconsin.

Selecting a new furnace is a big investment. You’ll definitely feel 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 pick 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 receive the tax credit, you must 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, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Halverson Brothers Inc, the experts will help you determine an option that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to check 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.

Qualifying for the tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our experts at Halverson Brothers Inc a call at 715-352-4052. 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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