Can I Earn Tax Credits for My New Furnace?

For a lot of families, there typically seems to be a long list of home improvement projects that they want to complete or new ideas they’d like to try. While several may not be necessary, furnace replacement is an example of a task that might be vital to keeping your home comfortable during the winter months in Chelan and Wenatchee.

Getting a new furnace is a large investment. You’ll absolutely notice the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be eligible 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 get the tax credit, you have to buy 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, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Lakeside Heating & Air, the experts will help you identify an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate 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 represents 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 purchase a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your utility costs during the year. And your family will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by installing a new high-efficiency furnace, give our experts at Lakeside Heating & Air a call at 509-284-4265. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.