Can I Earn Tax Credits for My New Furnace?

For a lot of households, there usually seems to be a lengthy list of home improvement tasks that they want to get done or new ideas they’d like to try. While several may not be required, furnace replacement is a task that might be vital to keeping your home comfortable throughout the cooler months in Des Moines.

Buying a new furnace is a large investment. You’ll absolutely recognize the return-on-investment on your indoor comfort along with your energy costs, but it could be a bit intimidating at first. The good news is that when you pick 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 extended through December 31, 2020. In order to obtain the tax credit, you have to buy 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 shopping for furnace replacements, look for solutions with the ENERGY STAR rating so you can be sure you’re selecting a high-efficiency furnace.

At Kohles & Bach Heating & Cooling, the experts will help you find a solution that fits your needs and helps you qualify for this tax credit. While ENERGY STAR products signify high efficiency, it’s important to check 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.

This tax credit won’t be the only savings you’ll receive when you purchase a new high-efficiency furnace. A lot of the most efficient models can save you hundreds of dollars on your energy bills during 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 installing a new high-efficiency furnace, give our experts at Kohles & Bach Heating & Cooling a call at 515-207-6569. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.