Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most families, there typically seems to be a long list of home improvement to-do’s that they want to do or new ideas they’d like to give a shot. While a handful may not be required, furnace replacement is a job that might be key to keeping your home comfortable during the colder months in Elmhurst.

Buying a new furnace is a big investment. You’ll absolutely realize the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you might 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 receive 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Alan Energy Services Air Conditioning and Heating Company, we’ll help you determine an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you’ll need to check 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.

This tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient solutions can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Alan Energy Services Air Conditioning and Heating Company a call at 630-833-1100. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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