Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement tasks that they need to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is an example of a job that might be key to keeping your home comfortable through the winter months in Perry.

Getting a new furnace is a big investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your utility costs, but it may be a tad intimidating at first. The good news is that when you pick 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 extended through December 31, 2020. In order to obtain the tax credit, you are required to buy 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 sure you’re selecting a high-efficiency furnace.

At Gillman Heating and Air, we’ll help you find a product that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate 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 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 receive when you get a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your energy costs throughout the year. And your household will also have more confidence in your HVAC system to help your home stay at just the right comfort level.

If you have questions about your eligibility for a tax credit, or if there are further local savings you could be eligible for by getting a new high-efficiency furnace, give our professionals at Gillman Heating and Air a call at 478-202-3076. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

Back To Blog