Can I receive a tax credit for my new furnace?

April 08, 2020

For most households, there always seems to be a lengthy list of home improvement tasks that they need to do or new ideas they’d like to give a shot. While a handful may not be necessary, furnace replacement is one task that might be key to keeping your home comfortable throughout the colder months in Wisconsin Rapids.

Getting a new furnace is a big investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your energy bills, but it could be a bit overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you may be eligible 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 must select 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, watch for products with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Rapids Sheet Metal Works Inc, the experts will help you find a solution that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need to confirm 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.

This tax credit won’t be the only savings you’ll observe when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills all year long. And your household will also have more confidence in your HVAC system to keep your house at just the right comfort level.

If you have questions regarding your eligibility for a tax credit, or if there are additional local savings you may be eligible for by purchasing a new high-efficiency furnace, give our experts at Rapids Sheet Metal Works Inc a call at 715-301-0256. You can also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.