Can I Get a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement tasks that they want to complete or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a project that could be critical to keeping your home comfortable during the cooler months in Menomonie and western Wisconsin.

Selecting a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy bills, but it could be a tad overwhelming 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 extended through December 31, 2020. In order to obtain the tax credit, you are required to purchase 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 heat pumps with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Halverson Brothers Inc, we’ll help you choose a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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.

Qualifying for the tax credit is not going to be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient products 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 other local savings you could be eligible for by getting a new high-efficiency furnace, give our teams at Halverson Brothers Inc a call at 715-352-4052. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.