Can I Get Tax Credits for My New Furnace?

For many households, there usually seems to be a large list of home improvement to-do’s that they need to get done or new ideas they’d like to attempt. While some may not be necessary, furnace replacement is one project that could be vital to keeping your home comfortable throughout the cooler months in Mankato area.

Getting a new furnace is a sizeable investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your utility costs, but it could be a little intimidating at first. The good news is that when you shop for a new energy-efficient furnace, you might 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 obtain the tax credit, you must buy 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 looking 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 Northern Comfort Inc, the experts will help you determine a product that fits your needs and ensures you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you select 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 buy a new high-efficiency furnace. Many of the most efficient products can save you hundreds of dollars on your energy bills throughout the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you have questions regarding your eligibility for a tax credit, or if there are further local savings you could be eligible for by buying a new high-efficiency furnace, give our teams at Northern Comfort Inc a call at 507-387-6596. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.