Can I Earn Tax Credits for My New Furnace?

For many families, there typically seems to be a large list of home improvement to-do’s that they would like to get done or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a task that may be critical to keeping your home comfortable throughout the cooler months in Des Moines.

Selecting a new furnace is a great investment. You’ll certainly see the return-on-investment on your indoor comfort along with your utility costs, but it may be a bit intimidating at first. The good news is that when you purchase 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 pushed through December 31, 2020. In order to receive the tax credit, you are required to buy 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 selecting a high-efficiency furnace.

At Kohles & Bach Heating & Cooling, we’ll help you find a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products signify high efficiency, you’ll need 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 indicates 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 find when you get a new high-efficiency furnace. Some of the most efficient furnaces can save you hundreds of dollars on your utility costs throughout the year. And your household will also have more confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you come across questions concerning your eligibility for a tax credit, or if there are further local savings you may be eligible for by buying a new high-efficiency furnace, give our teams at Kohles & Bach Heating & Cooling a call at 515-278-2900. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.