Can I Earn Tax Credits for My New Furnace?

For most households, there usually seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to try. While several may not be necessities, furnace replacement is one job that might be critical to keeping your home comfortable during the colder months in Des Moines.

Getting a new furnace is a great investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your energy bills, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might 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 have to buy 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Heartland Heating & Cooling, we’ll help you identify a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. Some of the most efficient products 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 help your home stay at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you may be eligible for by buying a new high-efficiency furnace, give our experts at Heartland Heating & Cooling a call at 515-344-3579. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.