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 lengthy list of home improvement projects that they would like to get done or new ideas they’d like to give a shot. While some may not be required, furnace replacement is one job that may be critical to keeping your home comfortable through the colder months in Cedar Rapids.

Selecting a new furnace is a large investment. You’ll definitely notice the return-on-investment on your indoor comfort along with your utility costs, but it could be a tad intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might be eligible 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 buy 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 confident you’re picking a high-efficiency furnace.

At Ilten's Incorporated, the experts will help you identify an option that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important to check 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. Some of the most efficient furnaces can save you hundreds of dollars on your energy bills all year long. And your household will 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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