Can I Get a Tax Credit for My New Furnace?

For most families, there always seems to be a lengthy list of home improvement tasks that they want to do or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a job that could be vital to keeping your home comfortable during the colder months in Bend.

Selecting a new furnace is a sizeable investment. You’ll certainly see the return-on-investment on your indoor comfort as well as your utility costs, but it may be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you may 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 select 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 shopping for furnace replacements, keep an eye out for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Tri County Climate Control LLC, the experts will help you determine a product that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need 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.

Taking advantage of this opportunity will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your energy costs throughout the year. And your household will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions concerning your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Tri County Climate Control LLC a call at 541-238-2797. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.