Can I Get a Tax Credit for My New Furnace?

For many families, there typically seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is an example of a task that might be key to keeping your home comfortable during the cooler months in Pocatello.

Selecting a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your utility costs, but it might be a bit daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be eligible 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 must select a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Vogts Heating & Air, we’ll help you identify a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want 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 indicates the percent of heat produced for every dollar of fuel consumed.

This 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 during the year. And your household will also have higher confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Vogts Heating & Air a call at 208-621-0129. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.