Can I Earn a Tax Credit for My New Furnace?

For a lot of households, there always seems to be a long list of home improvement tasks that they need to get done or new ideas they’d like to attempt. While several may not be necessary, furnace replacement is one job that might be key to keeping your home comfortable throughout the winter months in Michigan City.

Purchasing a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort as well as your energy bills, but it might be a bit overwhelming 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 prolonged through December 31, 2020. In order to receive the tax credit, you have to select 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 browsing for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Paniccia Heating & Cooling, the experts will help you determine a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to clarify that 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 is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs throughout the year. And you’ll also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by buying a new high-efficiency furnace, give our teams at Paniccia Heating & Cooling a call at 219-872-2198. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.