Can I Earn a Tax Credit for My New Furnace?

For a lot of families, there always seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is a project that may be vital to keeping your home comfortable during the cooler months in Michigan City.

Getting a new furnace is a great investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy bills, but it may be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you could be qualified 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 obtain the tax credit, you are required to select 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Paniccia Heating & Cooling, our team can help you select a solution that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to confirm 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 won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy bills during the year. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by getting 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 company if you have questions about other eligible home products.