Can I Get a Tax Credit for My New Furnace?

For most households, there typically seems to be a large list of home improvement to-do’s that they want to do or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one task that may be vital to keeping your home comfortable throughout the cooler months in Chelan and Wenatchee.

Buying a new furnace is a big investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your utility costs, but it might be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you may be qualified 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 obtain the tax credit, you have to select 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 looking for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Lakeside Heating & Air, we’ll help you choose a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

This tax credit won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your family will also have more confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at Lakeside Heating & Air a call at 509-284-4265. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.