Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For many families, 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 try. While some may not be required, furnace replacement is a job that may be key to keeping your home comfortable through the colder months in Cedar Rapids.

Selecting a new furnace is a large investment. You’ll certainly see the return-on-investment on your indoor comfort along with your energy bills, but it could be a tad daunting at first. The good news is that when you select a new energy-efficient furnace, you might be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, 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 heat pumps with the ENERGY STAR rating so you can be certain you’re picking a high-efficiency furnace.

At Ilten's Incorporated, the experts will help you choose an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to confirm the furnace you select 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 purchase a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And you’ll also have greater confidence in your HVAC system to maintain your indoor space 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 could be eligible for by purchasing a new high-efficiency furnace, give our experts at Ilten's Incorporated a call at 319-208-3295. You could also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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