Can I Get a Tax Credit for My New Furnace?

For many households, there always seems to be a long list of home improvement to-do’s that they would like to do or new ideas they’d like to try. While some may not be required, furnace replacement is one project that may be critical to keeping your home comfortable throughout the cooler months in Wisconsin Rapids.

Purchasing a new furnace is a big investment. You’ll certainly realize the return-on-investment on your indoor comfort along with your energy costs, but it may be a bit overwhelming at first. The good news is that when you buy 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 must purchase 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 solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Rapids Sheet Metal Works Inc, we’ll help you choose a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to confirm 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 won’t be the only savings you’ll find when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your household will also have higher confidence in your HVAC system to keep your house at just the right temp.

If you have questions about your eligibility for a tax credit, or if there are other local savings you could 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 may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.