Can I Receive a Tax Credit for My New Furnace?

For a lot of families, there typically seems to be a lengthy list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While several may not be necessary, furnace replacement is an example of a task that may be vital to keeping your home comfortable during the winter months in Cedar Rapids.

Getting a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy bills, but it could be a bit daunting at first. The good news is that when you pick 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 receive the tax credit, you must select 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, look for solutions with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Ilten's, we’ll help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 won’t be the only savings you’ll receive when you select a new high-efficiency furnace. A lot of the most efficient products can save you hundreds of dollars on your energy bills all year long. And your family will also have higher confidence in your HVAC system to keep your house at just the right temperature.

If you come across questions regarding 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 could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.