Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For a lot of households, there typically seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is one job that might be key to keeping your home comfortable during the colder months in Pocatello.

Selecting a new furnace is a big investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit intimidating at first. The good news is that when you select 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 pushed through December 31, 2020. In order to receive the tax credit, you have to buy 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 solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Vogts Heating & Air, the experts will help you choose an option that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check 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.

Taking advantage of this opportunity won’t be the only savings you’ll find when you buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your utility costs during the year. And you’ll also have more confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by getting a new high-efficiency furnace, give our professionals at Vogts Heating & Air a call at 208-621-0129. 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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