Family enjoying the comfort of home

Can I get a tax credit for my new furnace?

For most homeowners, there typically seems to be a long list of home improvement to-do’s that they need to complete or new ideas they’d like to try. While some may not be necessities, furnace replacement is an example of a job that might be key to keeping your home comfortable during the cooler months in Rapid City.

Purchasing a new furnace is a great investment. You’ll certainly realize the return-on-investment on your indoor comfort as well as your energy bills, but it could be a tad overwhelming at first. The good news is that when you shop for 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 obtain the tax credit, you have to purchase a furnace that has earned the ENERGY STAR label. It cannot be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When researching furnace replacements, watch for heat pumps with the ENERGY STAR rating so you can be certain you’re selecting a high-efficiency furnace.

At Street Heating and Cooling, we’ll help you identify a product that fits your needs and makes sure you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm 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.

This tax credit will not be the only savings you’ll receive when you buy a new high-efficiency furnace. Many of the most efficient models can save you hundreds of dollars on your energy costs all year long. And your family will also have higher confidence in your HVAC system to maintain your indoor space at just the right comfort level.

If you think of questions about your eligibility for a tax credit, or if there are further local savings you might be eligible for by getting a new high-efficiency furnace, give our teams at Street Heating and Cooling a call at 605-206-3915. You can also visit ENERGY STAR or contact your local utility establishment if you have questions about other eligible home products.

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