Can I Get a Tax Credit for My New Furnace?

For many families, there usually seems to be a long list of home improvement projects that they want to get done or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a job that might be vital to keeping your home comfortable throughout the winter months in Cedar Rapids.

Selecting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort along with your energy bills, but it might be a tad daunting at first. The good news is that when you select 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 prolonged through December 31, 2020. In order to get the tax credit, you must 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 browsing for furnace replacements, look for solutions with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Ilten's, our team can help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to check the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE means the percent of heat produced for every dollar of fuel consumed.

This tax credit is not going to be the only savings you’ll observe when you get a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your utility costs during the year. And you’ll also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our professionals at Ilten's a call at 319-208-2351. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.