Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For many households, there typically seems to be a large list of home improvement tasks that they want to complete or new ideas they’d like to give a shot. While several may not be required, furnace replacement is one task that could be critical to keeping your home comfortable throughout the colder months in Gresham.

Selecting a new furnace is a large investment. You’ll certainly recognize the return-on-investment on your indoor comfort along with your energy costs, but it might be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you could be eligible 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 select 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 browsing for furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be confident you’re picking a high-efficiency furnace.

At Honke Heating & AC, our team can help you determine a solution that meets your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to clarify that the furnace you choose has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE represents the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll observe when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your utility costs all year long. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temp.

If you come across 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 professionals at Honke Heating & AC a call at 503-663-8033. You can also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.

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