Can I Get a Tax Credit for My New Furnace?

For most homeowners, there usually seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to attempt. While a handful may not be necessities, furnace replacement is a job that could be vital to keeping your home comfortable through the colder months in Hudsonville.

Purchasing a new furnace is a large investment. You’ll certainly realize the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a bit overwhelming at first. The good news is that when you select a new energy-efficient furnace, you may 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 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 heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At West Michigan Heating & Air Conditioning Services, the experts will help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to confirm 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 find when you buy a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

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