Family enjoying the comfort of home

Can I receive a tax credit for my new furnace?

For most homeowners, there typically seems to be a large list of home improvement projects that they want to complete or new ideas they’d like to give a shot. While some may not be necessities, furnace replacement is an example of a task that could be critical to keeping your home comfortable throughout the colder months in Waterloo.

Selecting a new furnace is a sizeable investment. You’ll definitely feel the return-on-investment on your indoor comfort along with your energy bills, but it might be a little overwhelming at first. The good news is that when you shop for a new energy-efficient furnace, you might be qualified 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 get the tax credit, you must 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 researching furnace replacements, watch for products with the ENERGY STAR rating so you can be confident you’re selecting a high-efficiency furnace.

At Cronin-Verheul Heating & A/C Ltd, the experts will help you select a solution that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products indicate high efficiency, it’s important 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 means the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit won’t be the only savings you’ll receive when you purchase 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 maintain your indoor space at just the right comfort level.

If you have questions concerning your eligibility for a tax credit, or if there are other local savings you may be eligible for by purchasing a new high-efficiency furnace, give our technicians at Cronin-Verheul Heating & A/C Ltd a call at 519-664-0600. You may also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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