Can I Get Tax Credits for My New Furnace?

For many families, there usually seems to be a long list of home improvement tasks that they would like to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a project that may be vital to keeping your home comfortable throughout the winter months in Wisconsin Rapids.

Purchasing a new furnace is a large investment. You’ll certainly notice the return-on-investment on your indoor comfort as well as your utility costs, but it may be a tad daunting at first. The good news is that when you purchase a new energy-efficient furnace, you might 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 receive the tax credit, you are required to purchase a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re choosing a high-efficiency furnace.

At Rapids Sheet Metal Works Inc, we’ll help you choose a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your energy costs all year long. And your family will also have greater confidence in your HVAC system to maintain your indoor space at just the right temp.

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