Can I Get a Tax Credit for My New Furnace?

For most households, there usually seems to be a long list of home improvement projects that they want to do or new ideas they’d like to give a shot. While some may not be required, furnace replacement is a job that might be vital to keeping your home comfortable throughout the winter months in Streamwood.

Getting a new furnace is a big investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy bills, but it might be a bit daunting at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 purchase 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 solutions with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Pure Comfort Heating and Air Conditioning, our team can help you identify a solution that matches your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you will want to check the furnace you pick 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.

Qualifying for the tax credit is not going to be the only savings you’ll find when you select a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temperature.

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 buying a new high-efficiency furnace, give our technicians at Pure Comfort Heating and Air Conditioning a call at 630-313-2509. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.