Can I Earn a Tax Credit for My New Furnace?

For most families, there typically seems to be a large list of home improvement projects that they would like to do or new ideas they’d like to attempt. While several may not be necessities, furnace replacement is a job that may be vital to keeping your home comfortable throughout the cooler months in West Valley City.

Selecting a new furnace is a sizeable investment. You’ll definitely see the return-on-investment on your indoor comfort along with your energy costs, but it could be a tad overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you could be qualified for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were extended 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 shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Select Comfort Systems, the experts will help you select a product that meets your needs and ensures 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 means 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 find 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 throughout the year. And you’ll also have more confidence in your HVAC system to maintain your indoor space at just the right temp.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by purchasing a new high-efficiency furnace, give our teams at Select Comfort Systems a call at 801-305-4777. You could also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.