Can I Receive Tax Credits for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement tasks that they would like to do or new ideas they’d like to give a shot. While a handful may not be necessities, furnace replacement is a project that could be key to keeping your home comfortable through the cooler months in Hudsonville.

Buying a new furnace is a large investment. You’ll absolutely feel the return-on-investment on your indoor comfort in addition to your energy costs, but it might be a bit overwhelming at first. The good news is that when you purchase a new energy-efficient furnace, you may 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 purchase 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 browsing for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At West Michigan Heating & Air Conditioning Services, our team can help you find a solution that matches your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 indicates the percent of heat produced for every dollar of fuel consumed.

Taking advantage of this opportunity will not be the only savings you’ll receive when you get a new high-efficiency furnace. A lot of the most efficient solutions can save you hundreds of dollars on your energy costs during the year. And your family will 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 could be eligible for by getting a new high-efficiency furnace, give our professionals at West Michigan Heating & Air Conditioning Services a call at (616) 319-1436. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.