Can I Get a Tax Credit for My New Furnace?

For most families, there always seems to be a large list of home improvement to-do’s that they would like to do or new ideas they’d like to give a shot. While several may not be necessities, furnace replacement is an example of a task that might be vital to keeping your home comfortable through the cooler months in Michigan City.

Getting a new furnace is a great investment. You’ll definitely notice the return-on-investment on your indoor comfort as well as your energy costs, but it could be a tad daunting at first. The good news is that when you buy 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 must buy a furnace that has earned the ENERGY STAR label. Keep in mind it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Paniccia Heating & Cooling, we’ll help you find a product that matches 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 choose 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.

Taking advantage of this opportunity is not going to be the only savings you’ll observe when you buy a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And you’ll also have greater 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 additional local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Paniccia Heating & Cooling a call at 219-872-2198. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.