Can I Get Tax Credits for My New Furnace?

For a lot of homeowners, there typically seems to be a lengthy list of home improvement tasks that they would like to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is a job that could be vital to keeping your home comfortable throughout the colder months in Milwaukee.

Getting a new furnace is a great investment. You’ll definitely see the return-on-investment on your indoor comfort in addition to your utility costs, but it may be a tad intimidating at first. The good news is that when you purchase 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 extended through December 31, 2020. In order to receive the tax credit, you have to select 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 browsing for furnace replacements, look for products with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Done Right Air, we’ll help you choose a product that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you’ll need to clarify that the furnace you choose 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 is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy bills during the year. And you’ll also have higher confidence in your HVAC system to keep your house at just the right temp.

If you come across questions regarding your eligibility for a tax credit, or if there are other local savings you might be eligible for by installing a new high-efficiency furnace, give our professionals at Done Right Air a call at 414-207-4034. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.