Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For many homeowners, there typically seems to be a large list of home improvement tasks that they would like to get done or new ideas they’d like to give a shot. While several may not be required, furnace replacement is a project that could be key to keeping your home comfortable during the colder months in Gresham.

Selecting a new furnace is a sizeable investment. You’ll certainly feel the return-on-investment on your indoor comfort as well as your energy costs, but it may be a bit daunting at first. The good news is that when you select a new energy-efficient furnace, you could be qualified 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. It cannot 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 certain you’re picking a high-efficiency furnace.

At Honke Heating & AC, we’ll help you determine a solution that matches your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, you will want to clarify that the furnace you pick 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.

Qualifying for the tax credit will not be the only savings you’ll find when you buy a new high-efficiency furnace. Some of the most efficient models can save you hundreds of dollars on your energy bills throughout the year. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right temperature.

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 buying a new high-efficiency furnace, give our professionals at Honke Heating & AC a call at 503-663-8033. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.

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