Can I Earn Tax Credits for My New Furnace?

For many homeowners, there always seems to be a lengthy list of home improvement projects that they need to complete or new ideas they’d like to try. While a handful may not be necessary, furnace replacement is an example of a job that might be critical to keeping your home comfortable during the cooler months in Rapid City.

Getting a new furnace is a great investment. You’ll definitely recognize the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little intimidating at first. The good news is that when you select a new energy-efficient furnace, you might 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 get the tax credit, you are required to select 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 researching furnace replacements, keep an eye out for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Precision Mechanical, the experts will help you determine an option that meets your needs and helps you qualify for this tax credit. While ENERGY STAR products indicate 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 means the percent of heat produced for every dollar of fuel consumed.

This tax credit will not be the only savings you’ll find when you select a new high-efficiency furnace. Many of the most efficient furnaces can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to keep your house at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are additional local savings you could be eligible for by purchasing a new high-efficiency furnace, give our teams at Precision Mechanical a call at 605-206-3766. You could also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.