Can I Earn a Tax Credit for My New Furnace?

For many households, there usually seems to be a large list of home improvement tasks that they want to do or new ideas they’d like to give a shot. While several may not be necessary, furnace replacement is a project that could be key to keeping your home comfortable during the cooler months in Pocatello.

Purchasing a new furnace is a sizeable investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it may be a tad daunting at first. The good news is that when you purchase 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 receive the tax credit, you are required to purchase 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 shopping for furnace replacements, keep an eye out for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Vogts Heating & Air, we’ll help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you pick 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 receive when you get a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills all year long. And you’ll also have greater confidence in your HVAC system to help your home stay 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 might be eligible for by getting a new high-efficiency furnace, give our teams at Vogts Heating & Air a call at 208-621-0129. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.