Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most families, there typically seems to be a long list of home improvement tasks that they need to complete or new ideas they’d like to give a shot. While some may not be required, furnace replacement is an example of a project that might be key to keeping your home comfortable through the colder months in Hudsonville.

Getting a new furnace is a great investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your energy bills, but it may be a bit intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 receive the tax credit, you are required to select 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, keep an eye out for heat pumps with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At West Michigan Heating & Air Conditioning Services, our team can help you choose a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to clarify that the furnace you choose 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And you’ll also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you may be eligible for by getting a new high-efficiency furnace, give our experts at West Michigan Heating & Air Conditioning Services a call at (616) 669-3961. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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