Can I Earn Tax Credits for My New Furnace?

For a lot of households, there always seems to be a lengthy list of home improvement to-do’s that they need to complete or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is one project that might be key to keeping your home comfortable throughout the winter months in Mason City.

Purchasing a new furnace is a sizeable investment. You’ll definitely recognize the return-on-investment on your indoor comfort along with your utility costs, but it may be a tad overwhelming at first. The good news is that when you shop for 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 prolonged 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 researching furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be certain you’re choosing a high-efficiency furnace.

At Mechanical Air Systems Co, the experts will help you find an option that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to check the furnace you choose 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 won’t be the only savings you’ll receive when you buy a new high-efficiency furnace. Some of the most efficient solutions can save you hundreds of dollars on your energy bills during the year. And your family will also have more confidence in your HVAC system to maintain your indoor space at just the right temperature.

If you think of questions about your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our teams at Mechanical Air Systems Co a call at 641-243-4654. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.