Can I receive a tax credit for my new furnace?

April 08, 2020

For most households, there typically seems to be a large list of home improvement to-do’s that they want to get done or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is an example of a project that could be critical to keeping your home comfortable through the colder months in Hudsonville.

Getting a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a bit daunting at first. The good news is that when you select 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 pushed through December 31, 2020. In order to get the tax credit, you have to purchase 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 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 West Michigan Heating & Air Conditioning Services, we’ll help you select a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you pick has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit will not be the only savings you’ll observe when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you could be eligible for by installing a new high-efficiency furnace, give our teams at West Michigan Heating & Air Conditioning Services a call at (616) 319-1436. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.