Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many homeowners, there typically seems to be a lengthy list of home improvement tasks that they would like to get done or new ideas they’d like to attempt. While a handful may not be required, furnace replacement is one job that could 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 as well as your energy costs, but it could be a little daunting at first. The good news is that when you select a new energy-efficient furnace, you could be qualified 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 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 products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Vogts Heating & Air, the experts will help you choose a solution that meets your needs and helps 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.

Taking advantage of this opportunity won’t be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs during the year. And your household will also have greater 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 may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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