Can I Get Tax Credits for My New Furnace?

For many households, there typically seems to be a large list of home improvement projects that they want to do or new ideas they’d like to attempt. While some may not be required, furnace replacement is an example of a job that may be vital to keeping your home comfortable throughout the colder months in Portland.

Purchasing a new furnace is a great investment. You’ll absolutely feel the return-on-investment on your indoor comfort as well as your utility costs, but it might be a little overwhelming at first. The good news is that when you pick a new energy-efficient furnace, you may 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 get the tax credit, you have 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 looking for furnace replacements, watch for solutions with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At All Solutions Heating & Cooling, our team can help you select a solution that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, you will want to check 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 won’t be the only savings you’ll observe 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 household will also have more confidence in your HVAC system to help your home stay at just the right temp.

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 All Solutions Heating & Cooling a call at 971-245-2459. You may also visit ENERGY STAR or contact your local utility company if you have questions about other eligible home products.