Can I Earn a Tax Credit for My New Furnace?

For a lot of homeowners, there always seems to be a large list of home improvement to-do’s that they need to do or new ideas they’d like to try. While several may not be necessities, furnace replacement is an example of a task that might be key to keeping your home comfortable through the winter months in Cedar Rapids.

Selecting a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it might be a little daunting at first. The good news is that when you buy a new energy-efficient furnace, you could be approved 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 are required to buy 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, keep an eye out for products with the ENERGY STAR rating so you can be confident you’re choosing a high-efficiency furnace.

At Ilten's, the experts will help you choose an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify 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 represents 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 observe when you buy a new high-efficiency furnace. A lot of the most efficient furnaces can save you hundreds of dollars on your energy bills throughout the year. And your household will also have higher confidence in your HVAC system to help your home stay at just the right temp.

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